Once the ‘Non-disclosure agreement’ is finalized, consider:
1) Has the organization angel investor proved helpful in your market and if so what is his/her encounter level?
2) What sources does the organization angel investor already implement that can be connected straight into your business?
3) What sources does the organization angel investor have that you as an business owner may be able to leverage? Example, entry to workplace real estate asset, entry to team, current know-how?
4) For angel investors required organization private investors past investment strategies, how many of them are just like your organization and industry?
5) Could you make use of some of the organization angel investor’s sources to straight advantage yours?
6) What encounter does this organization angel have in your industry?
7) Has the organization angel Investor managed and left from a identical organization as yours? If so, what were the outcomes and how much of it was as due to this Investor? Would the investor be relaxed with you getting in touch with the business owner (s) engaged in that business? If not, why?
8) How successful are the Business Angels current businesses? Asking this query and confirming this with companies’ home can be quite disclosing.
9) How many investment strategies have the organization angel created in the past? This is a essential query as it will always be a lot simpler to cope with someone who has been an angel before, and has encounter in angel making an investment over someone who has cash to get but has not spent in an business owner before.
10) If the angel investor has created past investment strategies, would the organization angel investor be willing to offer you with get in touch with information of business owners that will work (or have worked) together with the organization angel, so you may get in touch with them to talk about what kind of assistance stage the business owner has received?
11) What advantage interval is the organization angel investor sensibly looking at?
12) And lastly, Real Net Value – Though you may never know the actual determine from your prospective organization investor, comprehend as a concept that a organization angel investor should have at least 10 times the financial commitment variety of assets available. So if you are asking for £75,000.00, the Angel Investor should have cash or sources that are quickly sports convertible to cash over the temporary while also being able to assistance their financial obligations. This is not a query of achievements, but affordability!
An actual investors real estate required a reputation in the market and must always be looking for to win, but most significantly, also be willing to fall brief. Willing to fall brief can only come eventually from cost and the capability of being able to reduce the spent money! An organization angel, together with their investment raising must offer durability to an organization model and this durability cannot come from someone who is in continuous worry of dropping their financial commitment.
Though this record is definitely not thorough, it may possibly expose ‘red flags’ that you should be differ of, and is a start to some of the concerns you may want to ask in due course and part of your due persistence procedure before getting financial commitment from a organization angel investor.