JFDI mentor Shane Cheek shared some advice on what Angel Investors are looking for at a Startup Talk on Monday at Plug-in@blk71. Shane is the Managing Director of Method Advisory, with more than 13 years experience in business consulting, venture capital and technology commercialization.
What advice did he share?
1. Angels want to know how you’ll use their money.
“As an Angel investor at the seed stage, I don’t necessarily care whether you have a viable business but I care that you know where the biggest risks are and what you can do with my money to take that risk away.”
2. Solve a great pain or a great passion.
“If your business doesn’t revolve around one of those things, it isn’t likely to take off as a business.”
3. Competition is good!
“I like to see competition. It means people are willing to pay for something.”
4. Pick the right Angel Investor.
“Whoever you bring into your first round, figure out who amongst them will give you a halo effect and either attract other angels to invest in the next round, or will put in money again themselves. Can they advocate on your behalf (not just introduce you) and get someone to write a check?”
Prior to Method Advisory, Shane was an Investment Manager with Playford Capital, South Australia’s leading seed and early stage venture fund, which was instrumental in attracting over $100m of investment to its portfolio companies from Australia, Europe, USA, Japan and South East Asia.
Shane was also State Manager for the Australian Institute for Commercialization where he provided corporate advisory and commercialization advice to high growth companies in industries including automotive engineering, medical devices, environmental services, geospatial imaging and mining technology.
You can follow Shane on twitter at @cheekshane.