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The New Age of Angel Investing: How Startups Can Attract Smart Money
- Angel investing has transitioned to a focus on attracting 'smart money' that provides expertise, industry connections, and strategic guidance to startups.
- The evolution of angel investing includes increased collaboration among individual investors through syndicates, crowdfunding, and angel networks.
- Gaurav Mohindra emphasizes that modern angel investors are actively involved in their portfolio companies and startups should seek investors aligned with their vision.
- Key factors angel investors consider include a strong founding team, market opportunity, product-market fit, a clear business model, and an exit strategy.
- To attract smart money, founders should focus on building relationships, leveraging angel networks, demonstrating traction and progress, telling compelling stories, and being transparent.
- Startups can improve their chances of securing angel investment by engaging with potential investors before needing capital and attending industry events.
- Angel networks and syndicates provide startups with access to multiple investors simultaneously, increasing their chances of receiving funding.
- Founders should focus on measurable milestones like revenue growth and market reach to convince investors of their business's potential.
- Investors are not just interested in numbers but also want to be inspired by a startup's vision, mission, and potential impact.
- Transparency, openness to feedback, and a willingness to adapt are valued traits that can help founders build trust and credibility with investors.
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