Show notes for AngelConnect.info, episode 17: Ed Fikse
17. Ed Fiske shares his 7 Criteria for InvestmentIn this episode, Hall Martin of the Austin Angel Network interviews Fikse of the Baylor Angel Network (BAN). As a member of the board of the BAN, Ed delivers his seven points or criteria for investment opportunities.As you will hear in this audio episode, the seven key points which this BAN Board member highlights are:1. Look at the CEO and the management team
- He looks for the details of the EXPERIENCE and the
LEADERSHIP track record of the team.2. Make sure that the team UNDERSTANDS THE MARKET - This includes an understanding of the offerings, as well.3. Review the BUSINESS MODEL - See what the firm will do to make money;
- Understand how they will capture and establish VALUE;
- Ensure that this model is sustainable.
4. Understand "how BIG is this Market?" - Ensure that the market can support the "whole growth";
- Review potential of emerging markets; - See confidence that the firm will not "stall."5. What is the competitive differential advantage? - Does the firm have any barriers to entry for others? - Ensure that the advantage is sustainable.
6. Review the Personal Risk Profile (PSP) - This should be reviewed for both pre-revenue and post-revenue environments7. Look for a simple Capital Table - You should understand "what you are buying" - Get the details of the percentages of the company ownership.
Hall explores these seven criteria and highlights some scenarios for Angel Investors.