Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.

My Company is looking to get angel investing for a startup in order to provide more resources/time to various aspects of our business.

How long does it take to sway an angel to invest? I know this may vary from startup to startup, but is there a ballpark anyone can tell me?

share|improve this question

closed as not constructive by TimJ, Christian, Karlson, Zuly Gonzalez Sep 16 '12 at 16:23

As it currently stands, this question is not a good fit for our Q&A format. We expect answers to be supported by facts, references, or specific expertise, but this question will likely solicit debate, arguments, polling, or extended discussion. If you feel that this question can be improved and possibly reopened, see the FAQ for guidance.

1 Answer

up vote 1 down vote accepted

Time to get investing varies from startup to startup. Typically you should allow at least 6 months for the process from your first meeting with any investor to closing the round. That's not to say it can't happen faster or that it won't take longer, but 6 months gives you a ballpark timeframe.

Why does it take so long? Because pitching to investors is a skill that takes time. You'll get better at it with each meeting, so your early meetings won't be nearly as strong as your later ones. And because investors want to see what type of progress you make from when they first meet you until when they invest. It's like dating. Mark Suster has a fantastic blog post on this topic: Invest in Lines, not Dots

The exception to this rule of thumb is if your startup is "hot" (meaning there's a lot of buzz about it or that you are growing like wildfire.) In this case, investors may invest after 1 meeting.

Angel investors all have different criteria of startups prior to making an investment. Here's a list of basics that most investors would like to see:

  1. A strong team. Many are investing in the team moreso than the idea. Because the idea will likely evolve and change, but the team hopefully won't. If you are building web technology, most will likely want the technical talent to be on the team rather than outsourced (there are exceptions but they are few and far between.)
  2. A product. These days, with cloud-based infrastructure, building an initial product is much easier and less costly than it was 5-10 years ago. Because of this investors will want to see some form of real product prior to investing.
  3. Traction. Traction is somewhat of a "buzz" word. It could mean users, it could mean revenue, it could mean something else. Basically, it's a way to show that your "line", as mentioned before, is upward sloping.
share|improve this answer

Not the answer you're looking for? Browse other questions tagged or ask your own question.