AngelHub Ventures is a seed stage Venture Capital fund investing into lean startups with disruptive business models and technologies.
Key characteristics of businesses that interest us:
– Disruptive business models enabled by technology.
– Attack existing profitable industries and markets – so there’s already money being made in an industry, you just have to win a share of it. “We want to be the small mosquito on a massive artery.”
– Scalable and poised for rapid growth.
– Strong leadership team with a realistic and executable business plan.
– Already have Minimum Viable Product (MVP), and better yet, a first customer or two (some traction).
– Realistic valuation that is more focused on the execution requirements than the potential value of the idea: that’s right, ideas are cheap, we want to get it done.
– Follow a lean methodology: So you build minimum viable products and get them into the market to test asap; then you improve and rapidly get the next version launched [Lean Startup].
– Flexible cost structures: the business has more variable than fixed costs, which can change and be adjusted as the business changes. We’re not a fan of capital intensive models.
– Come with a reference: you’ve taken the time to get a recommendation / reference from somebody we know / respect.
– Know your key metrics, both for your past performance and the industry norms.
– Finally, it has the potential to return 10 times the investment within 5 years. Doesn’t mean we’re going to sell, but it needs to grow rapidly.