My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Venture Capital

What Investors Look For When Evaluating Your Pitch: Carlos Domingo

What Investors Look For When Evaluating Your Pitch: Carlos Domingo
Image credit: Shutterstock
Guest Writer
Senior Executive Officer for New Business and Innovation, du
2 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

When evaluating any investment there are many things to look for, but I can divide them into the following categories:

1. Talent.

The first thing I do is to look at the founders and be convinced that they have what it takes to be successful entrepreneurs and build a business. People are the most important thing in a startup so people and talent always comes first when deciding -especially for early-stage investments, which is what I do- because the team is typically very small.

2. Experience.

Alongside talent, experience is the other important thing. Most successful entrepreneurs (against popular belief) are experienced, middle aged people that have done it before and know how to do it. They know the market, how to make products, how to sell them, how to raise money, etc. Very rarely [do] I invest in people without experience, and when I have done it most of the time it has not worked great.

3. Idea.

The entrepreneurs need to have an idea for a market that is sufficiently attractive for an investor to make a return. Too small or too niche or local products -or products that are really just like features of existing products- do not interest me. I need to be convinced that they are proposing to solve a problem that someone today has, that is not being addressed by current products or services, and that it is important enough that people will adopt their product to solve that problem.

4. Valuation And Round Size.

The other thing I look at is where the company is, and what they are asking for both in terms of total money to raise and valuation? I am an angel investor so I mostly do only very early stage.

5. Who Are The Other Investors?

This shows the ability of the entrepreneurs to attract smart money which is particularly important at the beginning; their criteria when choosing partners, and how much they value to be around good people. It also helps me validate my thinking about the company, discussing it with other investors I trust and value.

More from Entrepreneur

Corene Summers helps clients advancing their health, careers and lives overall through reducing stress, tension and optimizing sleep.
In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur