What Angel Investors Seek In A Startup

November 28, 2017

“It’s not really about the product,” declares Jiignesh Jaiin of YGEN Capital, a Smart Capital Investing Company talking about funding startups. “It’s really about the founders and how much are they willing to put in.

“Are they going to be consistent? Persuasion, Perseverance and Persistence are key traits we look for in founders,” he shares speaking to Pune365 about what investors value most when determining what to fund.

As an investment company, what do you value most in startups you’d like to invest in?

As an investor I think it’s more important to see whether the product or service brings value.

You must consider whether or not it shall have an impact on the current market; be it business to business (B2B), business to consumer (B2C) or Business to business to consumer (B2B2C). Some investors may require that B2B Sales Services come in to check the business plan and operations before securing funding.

Then several factors come into play such as, what the value proposition is and whether the product has scalability. Then there are the team members and the founder.

Do they have the zeal to drive it through? I think the latter is a vital factor.

What facets do you wish startups would work on before seeking more funding?

From the ground up, I think they must have a proof of concept, or a pilot, that gives the investor a little bit of knowledge and a first hand feel of how it would be. Investors can envision it themselves and discern quite easily whether a business can be successful.

What sort of mindset do you hope to see in founders seeking funding?

Well, it’s about how determined founders are and how much are they willing to put in. Do they possess the zeal to make this happen?

Which sector do you think hold the most promise for startups in the next decade?

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Major issues apart from lack of funding you see startups facing?

I think they must undertake through market research before they get in to try and really act on their product. It’s more important to have your homework done before you plunge in.

As an investor, do you prefer startups belonging to a particular sector when you’re looking to invest?

We are not necessarily biased toward a particular sector while investing. We’re fairly agnostic, however, we are intrigued by the aforementioned sectors.