These tips will help you be a smart angel investor

An investor will always do his due diligence before he makes an investment in a startup. And when it’s an angel investor, he has to be doubly sure about his decision. If you are an angel investor and thinking of investing some of your monies in a startup, make sure you read these tips.

The core team

This criteria becomes all the more important for an angel investor because he will be funding a startup on his own. This should be kept in mind especially if it is a seed funding. Learn more about the core team who have launched the company and then decide.

Growth opportunities

As an angel investor, you will find ample opportunities to grow along with the company. You can be more than just an investor in the company. If you don’t see that growth opportunity in the startup, maybe you should look at some other options.

The market space

The next parameter is the sector of investment. Assess the sector in which the startup has been launched. Since you are an angel investor, understand where your money is being invested.

Emergency exit

Every investor looks for an easy exit, if unwarranted circumstances arise. Hence, easy exit is a crucial factor for any angel investor before they zero in on a new venture.