Evaluating startups goes beyond intuition and gut feelings. Angel investors employ a range of
tools and strategies to conduct thorough due diligence and make informed investment decisions.
Extensive Research
Angel investors dive deep into market research, industry trends, and competitive analysis to
gain a comprehensive understanding of the startup’s market landscape. They leverage their own
knowledge and engage with industry experts to validate the startup’s potential.
Financial Analysis
Investors analyze a startup’s financials, including revenue projections, cost structure, and
funding requirements. They scrutinize the financial viability of the venture and assess its
ability to generate sustainable returns.
Mentorship and Guidance
Angel investors bring their expertise, experience, and networks to the table. They offer
guidance and mentorship to startups, helping them overcome challenges and navigate the
complexities of their respective industries.
Leveraging Networks
Angel investors tap into their extensive networks to open doors for startups. They connect
founders with potential customers, partners, and follow-on investors, exponentially increasing
the startup’s chances of success.