Seesaw

Caught in the Tech

As an angel investor, it is all too easy to get caught up in the latest and greatest technology. Believe us - we've already analyzed over 160 companies this year. We are constantly bombarded with pitches for cutting-edge solutions that promise to "revolutionize entire industries." It is easy to get swept away by curiosity in how the product works (especially for engineers like me). However, we believe it is equally important to keep in mind the fundamental principles of business that underpin every successful investment.

A Common Mistake

One of the most common mistakes we see among angel investors is an overemphasis on technology at the expense of other critical factors. They might be impressed by a product or the technical details of a new technology, but completely overlook the team behind it, the market potential, or the financials of the company.

Investing in new tech can be exciting, but it's important to remember that success is not guaranteed by strong technology alone. When assisting with the evaluation of a potential investment, we strive to take a comprehensive approach. Consider the team responsible for the technology - do they have a track record of success? Do they have the expertise to execute on their vision effectively? Consider the market potential - is there a genuine demand for the technology, and is the market size significant enough to sustain expansion? And, of course, analyze the financials. Does the company have a clear path to sustainable growth, and have they mapped a realistic plan to achieve it?

Balance

By balancing technical analysis with a focus on broader business fundamentals, angel investors can make more informed investment decisions and increase their chances of success. The technology may be impressive, but taking a moment to assess the larger context before making a commitment can be invaluable.

About Me

I cultivate flourishing.

I'm also the CEO of PitchFact, where we help angel networks conduct efficient and collaborative diligence. I'm a proud husband, aspiring father, and grateful friend. My love languages include brisket, bourbon, and espresso.

About PitchFact

PitchFact helps angel networks conduct efficient and collaborative diligence.Learn more at pitchfact.com.