Do Angel Investors Invest In Ideas?
They will be investing in the people, The ideas, and of course the market potential of the startup.
The angels don't care about what kind of company the idea comes from.
They only care about whether or not the idea will work.
This makes angel investing a bit different than venture capitalists, who focus on a company's business plan and financial health, instead.
A great idea will get you nowhere with venture capitalists. It will only get you tossed out on the street with the loser ideas.
Do Angel Investors Invest In Ideas, Angel investing is completely different. It makes finding great companies much easier. There is a great angel investors club for beginners to get started in angel investing here. or you can read one of my reviews of that here.
The fact that the angel investors will really back startups so that the company will really grow. That and the fact that the company is really going to make a profit is what drives these investors to invest so much.
That and the fact startups are launching a new product is what drives the angels to invest so much.
A great product is another great way to pitch the future company to investors. The reason why investors will invest so much is that they know the product. What it can do. And that it will really make money.
Because we know a lot of companies that are pitching to investors have a great product that people really want.
Do Angel Investors Invest In Ideas
One thing I know for sure is that investors only care about the company and not the product. So if the product is really good we can get people to invest in our future company more than any other company, no matter how great the product is.
Do Angel Investors Invest In Ideas, The market is always in a need of new products.
Not just in the future products that are pitching them, but in the present products too. There are so many out there that need to be sold.
Some of them are old companies that need a new product to jumpstart their sales. There are so many government & company time wasters out there that need a new product to get the sales that they need.
But not all of them will be successful.
However, there are some that will be successful.
There are three reasons why investors will invest more in a future product rather than another old product.
1. Past Products Are Stuck In The Past.
Companies that have come out with past products that have not been used in ten years, or even just been put away for a long time, have not had the sales momentum that a new product would have.
The one example that I can think of off the top of the head would be those plastic water bottle companies that came out with a plastic water bottle that would make people sick when you drank it. But when you actually went out and bought one of them, they just sat at the bottom of the sales charts for years.
The one that I am thinking of is not the product that you drink out of every day. The one that I am thinking of is the one that your grandma drank out of. That was the product that was sold every single week.
So because the product was out of fashion 10 years ago, there wasn't any sales momentum. But the future product is just coming back in fashion today.
2. Past Products Are Very Boring
It is very boring to look at companies that have sold an old product for the last 10 years.
You don't get any excitement out of it. Because there is no sales momentum and there is no excitement, it is very difficult to get excited about a past product.
It is also very difficult to get excited about a company that is just selling the product out of fashion.
3. Past Products Are Very Hard To Work With
It is very hard to look at companies that have sold an old product. And it is very hard to figure out what price you should set for the product. Because you don't know what sales momentum looked like for it.
But most importantly, when you buy an old product you don't have the ability to quickly pull it out of fashion. For example, when your grandma drank out of a Styrofoam cup, she probably didn't drink out of that cup every day.
She probably just drank it out of pride that day. If she drank out of that cup every day, she probably threw it away. It is very hard to pull something out of fashion.
4. Past Products Don't Make Us Rich
Do Angel Investors Invest In Ideas, It depends on how you look at it. If you want to make a fortune on something, you will have to sell something that makes people want to buy it.
You don't have to sell something that makes people want to buy it every day. But there is no way to know when people will want to buy your product unless you sell it.