Introduction:
When it comes to early-stage startups, angel investors often place more importance on the founder than the product. Sam Kamani explains why investors focus on the founder’s traits and how entrepreneurs can position themselves for success when seeking angel investment.
Why Founders Matter More Than Products
For angel investors, a great product is only as strong as the person leading it. “Early-stage startups evolve quickly, and the product can change,” says Sam. Investors look for founders who are adaptable, decisive, and capable of leading through uncertainty. A good founder can pivot and adjust the product as needed, while a poor one may struggle even with a solid initial idea.
What Angel Investors Look for in Founders
Sam highlights several key traits that angel investors prioritize ambition, resilience, and the ability to move fast. “Investors want to see that founders can take action quickly and learn from failures,” he explains. Additionally, a founder’s ability to inspire a team and attract talent is critical, as building the right team can make or break a startup’s success.
How Founders Can Improve Their Chances of Funding
For founders seeking angel investment, Sam advises focusing on building a strong personal brand and network. “Investors are more likely to bet on someone they trust and believe in,” he notes. Founders should also be prepared to demonstrate a clear vision for their business and how they plan to execute it.
Conclusion:
Founders, not products, are the key to attracting angel investment. To learn more about what investors are looking for, listen to the full podcast episode on the EdgeHog Podcast.
Explore more about these related topics, read our articles on The Journey from Bootstrapped Startups to Successful Exits and pivoting a startup.