What Angels look for in Startups

In a previous post I talked about what VCs look for in a startup. Factors like clear understanding of competition and business skills are considered more important than the specific idea that is being funded. Business Week talks about Angel investors and their methods. Angels have become more organized than ever and use the same decision criteria as VCs:

1. What is the market opportunity, barriers to entry, and business model?
   
2. What's the company's competitive edge?
   
3. Is there an exit strategy?
   
4. What is the entrepreneur's background?

"The biggest fallacy
is that 98% of people think if they have a wonderful technology the
business will take care of itself," says Holdren. "But the character of
the entrepreneur is more important than the technology."