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3 Reasons Angel Investors Will Fund Your Company

Exceptional management is vital for any business. Three-quarters of survey respondents said the management team of a startup was their biggest consideration for investing.

“Startups are not only about the technology or business idea but also very much about the people behind them,” said Swati Chaturvedi, CEO and co-founder of Propel(x). “A compelling, experienced team that can sell the vision and the potential impact is key to success, and something savvy angels look at closely.”

Some exceptional qualities to have as part of a management team are integrity, clarity of strategy and approach, professionalism and determination, Chaturvedi said.

Angel investors want to understand exactly what they are financing, especially for startups in the tech field. More than 50 percent of respondents claimed this as one of their top reasons for investing, and 94 percent find it helpful to have subject-matter experts explain the technologies within their company before investing. In fact, many choose not to invest in specific businesses due to their inability to grasp their technology efficiently.

“The easier we make it for angel investors to discover, evaluate and participate in science and technology startups, the more we’ll see money going into these worthy companies and the benefits to humanity accrue,” Chaturvedi said.

Naturally, angels look for opportunities that will benefit them as well. Forty-nine percent ranked potential ROI as their top motivator for making an investment decision.

While some investors are indeed looking for financial compensation, not all are primarily interested in just the money. Some want a different kind of return: The ability to solve the world’s biggest challenges through the businesses they fund. Nearly one-third of angels will choose to invest in a company based on its connection to important social issues.

“Having an impact matters, especially when it comes to investing in things like curing diseases, feeding a growing global population, fueling the planet with clean energy and even taking us into space,” Lisheng Wang, Propel(x)’s co-founder and head of investor development, said in a statement. “Science and technology startups especially should take note that when raising capital, they should emphasize the impact of their solution besides potential returns to investors. It’s not only about the ‘what,’ it’s also about the ‘so what?'”