Jan 19, 2016
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.