We use cookies
Our site relies on them (cookie policy). You can opt out of one of them, but we only use it to analyse traffic
Only essential

Understanding how angel investors think

Written by
Sam Simpson
Last updated
2nd October 2023

TODO - Uploaded image description

Together with Eva Dobrzanska of Block Dojo, we've put together the above graphics to illustrate the things that investors want to see (in green, and some of the red flags to avoid in red).

Here’s how early-stage investors evaluate your startup's investability:

  1. Team (the most important slide, especially at Pre Seed & Seed)
  2. Traction & Proof Points
  3. Market (if you’re raising from VCs, it’s crucial that your SOM is large enough for their desired ROI)
  4. Proposition (does your solution and its business model make sense?)
  5. Competition vs Defensibility (what’s your USP?)
  6. Financial Forecast (although it’s just projections at the early stages, it must be reasonable and all numbers well-justified). Sure, every investor will take an early stage forecast with a very large pinch of salt, but they will be looking to ensure that your model is sensibly constructed, that you've made sensible assumptions are costs, revenue, growth, customer acquisition costs and so on
  7. The Deal (how much are you raising? At what valuation)
  8. Exit Strategy (is there a potential for strong exit?)

Note: The above has been distilled from a number of UK based angel investors. Everyone's priorities are subtly different. The above list is not meant to be a proposed slide deck or indicative of the order your slide deck should be in.

← Back to all of the articles

Try us for free with no commitment

You can start a funding round in minutes with a free FounderCatalyst account, experiment with our service and see how easy it would be to save time, money, and emotional resources by using FounderCatalyst when raising your next funding round.

You can see a sample of the paperwork we'd generate, invite colleagues to act as investors, and truly experiment with how easy we make it. Then cancel the experiment round when you're ready to start a real one!

Need help?

Ask away...