According to the book, Winning Angels: The 7 Fundamentals of Early Stage Investing (2001), sourcing is defined as “identifying entrepreneurial projects of merit” (p. 33).
My main takeaway from this discussion on sourcing is that finding good deals and great opportunities for an investor is just as challenging as finding a great source of funding is for an entrepreneur. The tactics discussed focused on gaining notoriety and credibility among the investor's field of interest/focus or desired area of expertise.
In my business, Liberty Lodging, we have a unique set of sourcing criteria. Being in the government travel industry, we prefer to have both employees and investors with experience in the field so that they can speak knowledgeably and from personal experience to our customers. We have yet to bring in investors or managerial employees but when we do it will likely be as a part owner and operator. In this position, their previous knowledge of the industry will be of the utmost importance.
In this quick video, Barbara Corcoran explains her Angel Investor Checklist.
No comments:
Post a Comment