Angel Investsor Due Diligence Examinations

Angel Investor Due Diligence Examinations

Angel investors are interested in making investments in their area of interest (industries) and are looking for entrepreneurs who demonstrate confidence in their ability to build the successful new business.  Angel investors have a series of questions they ask entrepreneurs to determine if they are interested in investing (fits in their portfolio of investments), that the entrepreneur has a viable business opportunity, and whether they trust that the entrepreneur has the ability to build the new business.

Once it has been determined that the entrepreneur’s new business fits in the angel investor’s portfolio, the entrepreneur is given the opportunity to present to the Angel that they have a viable business opportunity.  Angel investors ask entrepreneurs their Due Diligence questions, note how confident the entrepreneur is that they have a viable business opportunity, and that assess whether the entrepreneur has the ability to build a successful new business enterprise.  The angel investor must be convinced that the entrepreneur can create and capture market share dominance, derive a profit with a significant ROI, and all within a reasonable payback period timeframe.

Angel Investor Line of Questioning includes:

  • Founders (Backgrounds, Expertise, Build New Business Motivation)
  • Stage & Historic Funding (R&D, Personal/Friends & Family, Angel Investments)
  • What is Your Product (Technology/Process Improvements, Unique/Better than Alternatives, IP Protection)
  • Who is Your Customer & Why Would They Buy (Ideal Customer Communities, Personas & 1st Degree Benefits)
  • How Does Customer Acquire Your Product (B2C/B2B, Direct/Indirect Sales, Demand Creation, WOM)
  • Competition (Barriers to Entry, & How Defend Against Major Brands)
  • Monetization (Channel Productize/Price/Promote, COG, COS, Revenue & Profits)
  • Scale Business Leverage Successes (Account Penetration, In-Depth, Broaden, Economy of Scale
  • Use of Funds – Overcoming Constraints (Supply Side, R&D, Distribution, Fulfillment, etc.)

Proven Preparation Process to pass the Angel Investor Due Diligence Examination

Prism has worked with entrepreneurs, cross-functional teams, strategic partners, channel partners and the investment community to develop its proven step-by-step process to be able to answer the Angel investor Due Diligence questions and to convince them that the entrepreneur has a viable business opportunity.  Prism invested in developing this process in order to enable entrepreneurs to obtain stakeholder commitments at each step that leads to a final determination that they indeed, have a viable business opportunity.   Prism works with the entrepreneur to pair their new business opportunity to angel investor portfolios, to provide the angel investor with the information to pass the Angel Investor Due Diligence Examination, and instill the trust in the ability of the entrepreneur to be able to build the new business.

If you need assistance in being able to pass Angel Investor Due Diligence Examinations

Contact Prism to get immediate results to enable you to pass Angel Investor Due Diligence Examinations AngelDueDiligence@PrismBusDev.com  or call (720) 352-3407

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