HomeAnalysisAngel Investment Network's Survey Reveals Positive Impact Drives Decisions

Angel Investment Network’s Survey Reveals Positive Impact Drives Decisions

A new survey conducted among global investors by Angel Investment Network, a London, UK-based online angel investment platform, has highlighted the preferences, motivations, and advice from angel investors. 

The document, which surveyed investors across the platform’s global network, revealed that:

  • Positive impact emerged as a crucial factor influencing investment decisions.
  • The primary motivations for becoming an angel investor included the potential for high returns (61%), portfolio diversification (40%), access to innovation (39%), hands-on involvement in early-stage companies (34%), and the opportunity to assist others (33%).
  • The common traits of successful startup founders that investors backed were a clear value proposition (77%),  passion and commitment (57%), strong value and mission (57%),  and strong leadership (46%).
  • The most common mistakes made by startups during fundraising included overvaluing the company (31%) and inadequate market research (18%).

In the current investment climate, investors are seeking well-capitalised startups with a strong track record. Advice for startups in fundraising includes reducing valuations (49%), planning for longer fundraising periods (44%), and raising smaller rounds (38%).

Red flags for investors researching startups included inexperienced teams, flagged by 63% of investors, no clear path to profitability (62%), no proven business model (46%) and not having finances in order (44%). Investors also indicated a preference for regular communication with founders, with monthly contact/reports being the most popular choice (53%).

Launched by James Badgett and Mike Lebus, Angel Investment Network (AIN) is an online platform connecting startups with a global network of angel investors. With 40 networks extending to 90 different countries and nearly 2m users, it is one of the largest angel investment community in the world. Angel Investment Network has helped tens of thousands of businesses worldwide with investments ranging from £10,000 to £1m. In 2021, AIN announced the launch of AIV Capital, an investor that seeks to partner with dynamic companies and strong management teams which have a demonstrated edge in the space they operate in.

VCWire

01/04/2024