From time to time, CTAN receives a member with an entrepreneur background. Recently, Joshua Shipsey joined the group. Joshua has a background in industrial engineering and now has his own business. Over coffee the other day he commented how angels look at deals differently from entrepreneurs. Joshua came to our last presentation meeting and saw the four deals presented and then witnessed the questions the angels asked.
Entrepreneurs look at the possibilities of the business while angels tend to focus on the risks remaining to be solved. The presentation format gives the entrepreneur just 10 to 15 minutes to cover all the major points of the business – management team, product, target market, competition, financials, funds sought, exit strategy just to name a few. Some entrepreneurs would like to spend more time on the product/service they offer, but the angel is seeking to identify the risks remaining in the deal and how to solve them.
I thought this was a particularly useful insight.