The evaluating fundamental and how it helps angel investors reach their goals

Okay forgive me if you’re not a basketball fan, but tonight’s game seven between the Boston Celtics and Miami Heat is going to have historic implications if Boston wins. Like being down 0-3 and having a mindset to take it one game at time, angel investors must dig deep to make the right deal happen. Reaching one’s goals is all about evaluating the possible roads to success and evaluating the right opportunities. As we explore the evaluating fundamental within Amis’s “Winning Angels: The Seven Fundamentals of Early stage Investing,” let’s look at it from an angel investor perspective and a failed businessman perspective (mine), so as always let me talk to you.

The entrepreneurial evaluation “Harvard Style” is a great framework for angel investors to build awareness of high potential opportunities and incorporates four elements to include people, business opportunity, context, and deal. As we look at the element of people, we dive into the three groups of people to include entrepreneurs, management team, and stakeholders. These three people carry the hopes and goals of the organization and are the catalyst for decisions angel investors must make. As an entrepreneur with no management team or stakeholders, I know I have an uphill battle to climb. I must say learning about the importance of these people was refreshing as most times, we focus on the founder and CEOs with no highlight on the team itself.

Now the next portion we have to break down is the business opportunity portion, which hone in on size, the model, customer, and timing. I will say as a failed businessman, who primarily operated as a sole proprietor, my main enemy was timing. One of the questions within timing was “what substitutes exist or might exist soon” and that question alone made me think about the early days of my decision to start a business. Back in 2013, the internet was still blooming and YouTube influencers were taking the world’s attention by storm. I decided to start a news and event site with the hopes that the company would help me grow as an influencer. I decided to start this way because there weren’t many people doing what I wanted to do, which looking back at it now, causes me to regret the missed opportunities I had.

Finally, to round out this chapter, the book highlights what goes into a deal, which are prices and structures. Another reason why I’m a failed businessman is because I failed to have both, which I know you’re screaming “of course you’re going to fail if you don’t earn money DUMMY.” The book notes how investors will inquire about the price for a product, which is why I know it will be a while before I snag an angel investor (and I’m fine with that). It’s all about playing the long game and before I set my price, I have to continue to evolve with the market and news industry. Well that’s it for now as I broke it down … peace.

Reference

Amis, D., & Stevenson, H.H. (2001). Winning Angels: The Seven Fundamentals of Early-stage Investing.