CHAPTER 3

What Makes a Compelling Business Angel Investment Opportunity?

Understand your first customer; it may be your Investor.

This chapter considers the question: What makes a compelling business opportunity for a business angel (BA) investor? Given the diversity of BA investors and their investment criteria, there is no standard, validated set of business characteristics that if met, will assure an investment offer. However, investable businesses share some common characteristics that we discuss in this chapter.

We first consider different types of markets that provide opportunities for entrepreneurial venturing, including understood, new, and ­service-­based markets. Opportunities arising from different types of innovation and technologies ...

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