Aspiring Female Angels,
I'm honored and motivated to share my tips on my 7 principles of angel investing as a women. I believe that this will serve as a guide to you as an/a would-be female investors.
1.The Company Must Have a Concise Inspiring Vision
The road map of every company is its vision statement which defines the direction for a company's growth. Having a unique and ambitious vision is inevitable for any company that wants to top in the nearest future. The vision of your company must be well defined so much so that presenting it to an ingenious person will automatically ignite that zeal ‘of wanting to belong’ in him/her.
2. Invest in a Company that creates a top-notch culture
Company culture is simply the environment or ambiance generated by a team of workers within a company. It is an essential component to consider as it determines how fast a company will grow.
As a CEO or founder, you would want to create a culture that keeps your team motivated and performing as efficiently as possible. Such cultures usually give room for team members to take risks, because risks often provide an opportunity for progress within a company. Encouraging a culture where members feel empowered to explore, conceptualize, take bold decisions allows employees to work at their top performance level. This typically constitutes the core element of any great company.
As an investor, you would want to look out for a company with such a top-notch culture to invest in.
Notwithstanding, it is equally fundamental to invest in a crew that generates a top technology culture. Summarily, create, and or invest in that company where employees display passion and are particularly obsessed with what they are doing.
3. The company should focus on a small, well-defined target market.
As a female investor, it is very crucial to consider the monopolistic aspect of the company you are about to create or that which you want to invest in, as far as a target market is concerned.
The company must possess an original monopoly in someplace(s). If the team aspires to capture everything in a huge area ‘out of the gate' you must assist them to narrow it down. Attacking an underplayed or formerly overlooked niche in a large space enables the company to grow without forfeiting anticipated market opportunities.
All prominent entrepreneurs hold an open bias, but they equally know how to implement discipline to converge.
4. Great companies work on solving problems
The age where companies were acclaimed for their longevity has long gone by. The real worth of a company is its ability to solve societal problems (that is, problems that matter).
On one hand, great companies drive top technology cultures into discovering and solving difficult societal problems.
On the other hand, “stealth” companies likewise those that wouldn't disclose their technology rarely win. Instead, teams that generate innovative technological solutions daily are the companies to bet on.
‘Show me a company that is based on providing valuable and long-lasting solutions to societal problems and I will show you a winning company'-that which will emerge in the shortest time possible.
Notwithstanding, Incremental gains are not satisfactory when investing in ‘seed-companies' because incumbent technology can grow amply to discard seed companies even before they strike the market.
It is therefore smarter to invest in a technological problem-solving corporation.
5. Creating the best directors and advisors for your team
As a female investor, your board of Advisors and directors should constitute top business professionals who will provide the guidance required to better manage the company. Because of the informal nature of this arm, it should be structured in a manner that maximizes the interest of the company. A strong company must attract top individuals from the industry that can invest in the business.
6. Good companies revise their time
A great team is composed of employees who will often genuinely review their timelines. However, the challenge is that several teams constantly alter their timelines, and sometimes would want to overlook what they agreed upon in the past. The bitter truth here is that nearly all start-ups miss their timelines, yet those that are noble enough to adjust and learn from their mistakes usually exceed.
7. Great companies would always either ‘find a way' or ‘make one'
A strong company is one composed of a team that is determined ‘never to give up'. A company with a culture that believes in ‘we can make anything possible' is that company that will probably operate at its fullest capacity. All things apart, as an investor, you are speculating on their initiative/decision to succeed- that is perhaps the choicest quality. Your team must be obsessed and determined to ‘find a way' ‘create one' just to make sure the company is progressing.
Bonus: It is essential to invest in very best engineers, management, and employees or simply make sure one of your founders is passionate about building a company.
While planned cultures/teams are quite effective for a company's growth, engineers drive a company even better. It is worth noting that higher yields grow from top companies, and these top companies are practically built by good management.
However, as much as possible, avoid overcrowded businesses like me-too and deal-affiliated companies, except you are sure that the team in question is outstanding and or you have an unfair benefit.