"Angel investors are at the vanguard of funding true innovation" states Propel(x) an online investing platform. A survey the firm recently released provides a new approach to help cut through the noise to find out what causes investors to fund startup companies. At Fund Wisdom we pull together research on this topic across universities, corporations, and fund managers. We currently cover 12 publications and relate the research to data collected across funding portals mostly in the United States. In this most recent research, online investing platform Propel(x) joined forces with Breakout Labs, Innovation Node - Los Angeles, and the MIT Alumni Angels of Northern California to conduct a study, Unfollow the Leader. The group posed a number of questions to the angel investor community, with a specific eye towards the kinds of companies and sectors that will capture their attention and - perhaps more importantly - why.
75 percent of angel investors reported the management team was the most important factor for investing. You've made it this far without a major capital infusion, but to take it to the next level and get some angel investors in your corner, the management team had better be at the top of its game.
Angel investors are up for a challenge, provided that it's one that vexes much of the world as well. 49 percent of respondents noted return on investment as their top reason to invest, but nearly one-third of all angel investors surveyed cited a desire to invest in technology that will solve some of the world's top problems as their main motivation. Fund Wisdom data pointed toward 3 main factors, selecting the right platform, pitch, and finding a lead investor. So if you've been sitting quietly with a fantastic breakthrough at your fingertips, it may be time to fine tune your elevator pitch, review legal considerations, and begin to share your ideas with the investing community through portals.
Next, angel investors like to invest in things they understand. A shade over half of those surveyed said they'll usually take a pass on technologies they don't understand. While the general idea may be sound, if the technology and infrastructure required to implement it is too complex investors will pass. For help with the pitch or the business plan.
While Propel(x) is one of many to produce this type of research it is a unique view with the partnerships they created. I believe in their overall mission, "overcoming obstacles to early stage science investing by helping angel investors discover, evaluate, and participate in breakthrough startups." and as more individuals enter the digital funding market, innovative ideas will bubble up to the surface faster, improving economies and societies.
For more research publications, data collected and analytics across funding portals mostly in the United States. view our offerings.
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