Worthworm Wisdom

Insights for entrepreneurs & investors

2014 Angel Investment Outlook Report: Inside the Mind of an Angel Investor in America (1)

Posted by admin on 2013-11-22 03:57:17

While we often speak of best practices to pitch angel investors, what we don’t often hear about is direct advice from them on realistically valuing a business, what irks them the most, what their likes and dislikes are, and what irritates them enough to end a meeting. Worthworm has a vested interest in making negotiations between entrepreneurs and angel investors more successful, so we recently conducted a survey of investors across the country to examine their attitudes and expectations. Interestingly, our research found investors are keen to make more investments in 2014, while also uncovering what they were most frustrated by and what they are looking for in proposals in the year ahead.

Part I of our research, which was conducted by OnePoll and released earlier this year, showed that angel investment is optimistically abundant, particularly in the mobile space. In the new Angel Investment Outlook Report, our study reveals that angels know what they’re currently looking for: new, exciting ventures that fill a market void and could become the wave of the future.

Worthworm 2014 Angel Investment Outlook Report - Question 1

They also know what they don’t want: for that wave to come crashing down. In fact, 1 in 2 angel investors surveyed said they regretted one of their investments this year, mostly because of valuing a business too optimistically.

Worthworm 2014 Angel Investment Outlook Report - Question 2

Worthworm 2014 Angel Investment Outlook Report - Question 3

The results uncover many other fascinating insights about the attitudes and expectations of an angel investor – information that could be valuable in developing your pitch and preparing for negotiations.

Curious about how much your venture could be worth? Or looking for a world-class teaching tool? Or are you trying to do due diligence on potential deals?  Then try a subscription to Worthworm, and let us help you.