

What Do Angel Investors Actually Do? (Part 1) - lpolovets
http://leoexplor.es/angel-investing/2013/03/13/what-do-angel-investors-actually-do-part-1/

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nishithfrrole
I'm not sure if it is a problem unique to India, but here Angel investors are
extremely risk averse. Other than looking at the competition, objective,
market opportunity and potential, they focus on current revenues A LOT! Their
decision of whether to invest or not depends almost 80-90% on whether you are
making steady income already, and that I think is the biggest
dealmaker/breaker than all other criteria.

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lpolovets
I'm not sure about the situation in India, but I can say that startup
investments are risky and angel investors are risk averse. It's always good to
see indicators that lower the perceived risk: a strong founding team,
traction, revenues, profitability, etc. In Silicon Valley, great traction with
customers can often lead to profitability, so traction without current revenue
is still considered a good sign. It's possible that traction is not as well
correlated with profitability in other locales, and so traction alone would
not be a strong enough indicator in those places.

