Angels have to wear many hats – from originating deal flow to due diligence to portfolio management. Traditional investment firms have teams to do the work, but the business angel has to find ways to leverage resources to make informed investment choices.
Best practices suggest the angel investors should conduct a minimum of 20 hours of due diligence before committing to an investment in a startup. Even if they do commit the time, they may not have the expertise necessary to make an informed investment.
What if angels could leverage a team of professionals in vetting startups? Well, they can by partnering with Accelerators.
Does investing in startups that have graduated from an Accelerators offer a greater likelihood of success? Since accelerators are a recent phenomenon, we don’t have years of historical data to answer the question.
So we turned to Alex Farcet of Startupbootcamp for some insights.
Angel Investing Benefits of Working with Accelerators
What are the advantages of angels working with an accelerator?
Qualified – and accelerated – deal flow. As a solo angel you can only meet so many startups and you have limited bandwidth in terms of supporting your investments.
To get down to ten selected teams each Startupbootcamp program will run 15 to 20 “Fast Track” events (one-day mentoring and networking events) in as many cities which allows us to meet hundreds of startups in various ecosystems. We also have scouting teams building lists of 1000+ startups per program and we’ll invite the most interesting ones to apply.
Finally, the startups that do get selected get the best possible start to their venture: access to 100+ mentors most of whom are serial entrepreneurs with a five to ten-year jump in terms of experience; connections to global corporate partners (from Cisco to Airbus, MasterCard, Google, Paypal and many others); and exposure to hundreds of investors at our world-class demo days.
Alex will be a speaker at Angelsbootcamp – Join Alex and many more business angels to share best practices in angel investing.
The more an angel investor understands about executing and managing the fundamental elements of early stage investing, the better positioned they are for generating greater returns on their investments. At Angelsbootcamp, we offer you the tools and experience to execute early stage investment deals to increase investment returns, grow successful companies and create jobs.