How Do Angel Investors Make Investment Decisions?
I tend to blog about a whole bunch of different things here, some about ChipIn and some about the process of starting a company. One of biggest hurdles we overcame early on was raising angel money so we could hire engineers and build the team around our concept. You have probably heard of many Web 2.0 companies these days starting on $200K or so. Well, that is nice and all when you are a social network site or browser add-on, but when starting a transaction based startup, the costs are substantially more. We are building V1 of ChipIn on barebones costs, but still, we had to raise a good chunk of angel funding. I found a pretty good article by David Cohen, a Boulder-based entrepreneur and angel investor on how angel investors make investment decisions. If you are raising angel money, it’s worth a read.
You never get a second chance to make a great first impression.