Successful interactions with investors depend on prioritising information to enable efficient decision-making and agreed plans of action. Both updates and board meetings benefit from being highly organised so that they focus on what progress is being made towards the startup’s objectives, and how future strategy can be shaped to improve performance.
Angel investors are wealthy individuals who put money into startups early on, and receive part ownership of the business in return, which usually comes in the form of equity. Angel investors also advise and assist the founder in growing the startup so that it can begin to generate revenue quickly and reliably.
Investment is important to the founder of an early-stage startup because it pays for the team, the infrastructure, and the prototypes that are needed for them to grow. To a business angel, early-stage investment is important because it allows them to obtain a significant equity stake at a low valuation. This gives them the ability to influence the direction of the startup and by extension the outcome of their investment.
Seed investment took a hit during the Covid 19 pandemic, with business angels and venture capital funds (VCs) electing to put more of their capital into late-stage startups such as unicorns with valuations over $1 billion, according to Crunchbase.