Continuing with yesterday’s post Book Review: Angel by Jason Calacanis, there are a number of recommendations and best practices that Jason uses as part of his angel investing strategy. Mid-way through the book he offers up four excellent questions to ask before making an angel investment.
From the book (pg. 141):
- Why has this founder chosen this business?
- How committed is this founder?
- What this founder’s chances of succeeding in this business–and in life?
- What does winning look like in terms of revenue and my return?
Too often, investors get enamored by the idea. Jason’s advice: it’s all about the founder. Ask these four questions the next time you’re considering an angel investment.
What else? What are some more questions you like to ask before making an angel investment?