One of the primary reasons for the failure of new businesses is a lack of core competency in its leadership and management team. Ironically, inadequate funding is another significant factor. Angels will closely scrutinize the individuals who will lead and drive the startup.
Angels will assess your team’s experience, drive, sharpness, and coachability. They will also evaluate your willingness to relinquish control and decision-making authority to them. While financial terms may be a concern, the extent of contractual control given to investors often poses a greater challenge for start-ups. Ultimately, angels seek to gauge your receptiveness to their input.
Angels will also closely consider your passion and commitment to your business idea. The ability to raise capital and instill confidence among employees, customers, future investors, and stakeholders is akin to a politician’s campaign. Your actions must reflect your zeal, not merely your enthusiasm. Are you inspiring? When discussing your passion project, does your enthusiasm resonate with others? It should.
Angels will seek management teams of high-quality entrepreneurs, even if this is your first startup. These teams should have a proven track record of leadership and performance, either within your business’s industry or in previous entrepreneurial endeavors. As partners, not just funders, your credibility is paramount.
However, an MBA from Wharton is not a prerequisite for entrepreneurship, nor is it uncommon. Your entrepreneurial spirit stems from your creativity and desire to break free from corporate constraints. Angel investors primarily seek to assess your experience in project management, team leadership, sales, accounting, and finance, among other areas relevant to your startup.
If your resume lacks specific skills, create a plan to enhance it by enrolling in a class or certification course. For instance, if you’re young and have limited management experience, consider volunteering with a volunteer team, preferably in an organization aligned with your passion area. If your dream is to create couture bathing suits but you majored in anthropology, consider taking a sewing and pattern-making class. While proficiency in sewing isn’t essential, having a strong idea and execution plan is crucial.
– Tyler, Founder and Principal Consultant
Thrive Venture Consulting—Connecting People and Ideas.