What are seed and angel investors really investing in? It isn’t your startup.

by Kraettli Lawrence Epperson in Capital & Valuations

DEMO Alpha PitchesA quick thought for a Saturday:

The reality is that seed and angel investors are not investing in your startup.

What!?

They’re not really just looking at your market space, your business plan, your pitch, your business model, your technology, your marketing plan and your financial projections – and making a decision with checkbook in hand?

Nope. Seed and angel investment is mostly about vision and leadership. These investors know that they’re NOT dealing with real companies yet and that they ARE dealing with highly immature products and services.

As a result, investors are mostly evaluating your competence, commitment, leadership ability, track record and likely potential.

They’re also evaluating your resilience, since all of them know that you’re going to run into roadblocks.

The reality is that seed and angel investors are not investing in your startup.

The best investors will basically tell you all of this up front – because they know that your financials and sales projections are BS.

So, when you decide to take your startup out into the investment markets, be sure to gear your investment pitch around the things that matter: Your ability to lead, to pivot and to persevere.

If you do that, as well as having a good business plan, you are far more likely to succeed in raising money for your startup!

Get out there and start innovating!

Need help with your business? Contact JumpPhase.com

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Kraettli Lawrence Epperson

Managing Director at JumpPhase Ventures
This blog is dedicated to providing advice, tools and encouragement from one entrepreneur to another. I want to keep this practical and accessible for the new entrepreneur while also providing enough sophistication and depth to prove useful to the successful serial entrepreneur. My target rests somewhere between the garage and the board room, where the work gets done and the hockey stick emerges.