A few do. However, it is generally the exception as most angel groups are seeking companies that are beyond the concept stage. Typically, angel groups are looking for experienced management teams with concepts that have been validated in the market. Consider screening the angel groups to determine if they are interested in concept plays. If they are, it will be indicated on their website. You might also consider applying for an accelerator program. Accelerators are designed to grow seedling concepts and will support your efforts to succeed. Here again, we would suggest you do your homework and identify which accelerators are the best mutual fit to increase your probability of acceptance.

As a policy, we do not endorse accelerators.  However, the reality is that like anything else, there are accelerator companies that are not so good and those that are great.  The trick is doing your homework in an effort to understand what the different accelerators offer and if their offering is a match to your needs.  Accelerator Options, a TurboFunder^SM   tool, can help you with this task and potentially reduce your research time and effort significantly as it identifies accelerator companies which have been ranked highly in independent studies over the past few years.

Angel groups typically desire to invest their monies into scalable opportunities which also bring a transaction event allowing them to cash out in 3-5 years. Family lifestyle businesses don’t generally facilitate either of these actions.

Most angel groups list their investment criteria on their website. If you are a startup company in Miami and the midwestern angel group indicates they invest only in companies from within the Midwest, you are likely wasting your time submitting your opportunity for consideration. It is important to carefully review the criteria of each angel group to determine if there is a mutual fit. By doing so, you can focus your submissions toward angel groups which might have a legitimate interest.

Most startups with submissions to angel groups simply do not meet the criteria of the group. Had the entrepreneur done their homework up front, they would have known this in most cases. Regardless, numerous opportunities cross over the desks of these angel groups. They simply don’t have the time to respond in detail to all of those submitted which are not a good fit.

Following are six lessons I’ve learned from mistakes in previous ventures over time:

1. Product market fit is to the startup what location is to real estate.
2. A team of passionate, coachable “villagers” is required to to scale a startup.
3. Ideas are worthless without execution.
4. Seek balance in your valuation and terms, not perfection.
5. Select your co-founders carefully; make sure you are diverse in culture, background and experience and compatible in objective.
6. Keep thou Balance Sheet clean!