When you ask investors, especially venture capitalists, about what they most look for in an investment they almost always say the team. Yes, the product and market opportunity have to be great, but the team has to be awesome (my view is that the team has to be great but the market has to be awesome).
I know an angel investor that has invested in over 20 startups. Yet, for the majority of the investments he hasn’t met the entrepreneur in person.
Here are some reasons he doesn’t need to meet the entrepreneur in person to make investments:
- He requires a working prototype to invest, so he gets to see what the entrepreneur was able to help build
- He uses Skype and Skype Video to talk with the entrepreneur, creating a much larger reach for investment geographies
- He invests small amounts in many startups, preferring a diversified portfolio approach
- He prefers email for helping out and doesn’t spend much time with each investment, but he’s available for them
The next time you think geographically about angel investors, remember that there’s a new breed, especially with the advent of AngelList, that will invest without meeting face-to-face.
What else? What are your thoughts on angel investors investing without meeting the entrepreneur in person?