What are some quantitative metrics angel investors look for in a pitch?
Unfortunately there’s nothing that can be generalized, because each case is different. Realistically, most angel deals are very early stage, which means that reliable metrics are pretty hard to come by. So most of the number crunching and ‘what if’ analyses tend to focus on customer adoption and revenues.
I’m looking at an opportunity at the moment with a business model and plan that I really, really love, but the founder is a first time entrepreneur who has wildly over-estimated his market penetration. Therefore, in order to come up with even a semblance of a viable analysis, I need to start by giving his projections a 90%haircut. And then we can start talking about what is realistic [sigh].
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
Written by David S. Rose
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