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I'm not sure if it is a problem unique to India, but here Angel investors are extremely risk averse. Other than looking at the competition, objective, market op
by nishithfrrole 14y ago
I'm not sure if it is a problem unique to India, but here Angel investors are extremely risk averse. Other than looking at the competition, objective, market opportunity and potential, they focus on current revenues A LOT! Their decision of whether to invest or not depends almost 80-90% on whether you are making steady income already, and that I think is the biggest dealmaker/breaker than all other criteria.
- lpolovets 14y agoI'm not sure about the situation in India, but I can say that startup investments are risky and angel investors are risk averse. It's always good to see indicators that lower the perceived risk: a strong founding team, traction, revenues, profitability, etc. In Silicon Valley, great traction with customers can often lead to profitability, so traction without current revenue is still considered a good sign. It's possible that traction is not as well correlated with profitability in other locales, and so traction alone would not be a strong enough indicator in those places.