Now, if you look at how a investor would evaluate a company. I am an angel investor myself, this is how I would look at a company when they approach me. So let's take a look at these seven things. I have given you seven diagrams, and you have to guess what do I mean by each diagram. Number one, Well if you have chosen the team, congratulations, that's the correct answer. As an angel investor, we are really investing in people first. Because a good team can execute any idea, good or bad. Well, you hope that they will be doing good ideas. But a bad team, even given a very, very good business idea, will fail. So team is definitely much, much more important, that's why I place them as number one. Now comes number two, what do you think that is? Well, that was easy, of course, that's the business idea. I said we put team first, but the idea is a very, very close second. Because I want a good team still to execute an excellent idea, a business idea that I think will fly and will have a great future. Let's see, let's move on to number three, what do you think that is? Well, if you have seen our previous module, you know I'm talking about the unfair advantage. What can I see from this team, from this venture, what do they bring to the table? Why are they uniquely placed, what sort of unfair advantage do they have over their competitor? Number four, this one is a bit hard to guess. Well, if I am investing in this company, and the company is in the valley of death, I want to make sure that I am giving them enough water to cross the desert. Because for a startup, the process of finding investors would be very long, it takes months, typically six months. And during that process, they are distracted from conducting their daily business, developing their model, and they are under a lot of stress. They are constantly ticking away in meetings, and so on, and it's a very, very distracting process. I don't want the startup to be in a position of fundraising again very soon. I want to make sure that the funding they get, the water they get, is enough to help them to cross the desert, to the next milestone. Hopefully that milestone is the break-even point, where they can be cash-flow positive. Then they are in a better position where they can sustain themselves. Let's look at number five. And you guessed it correctly, I'm looking for a company that is highly scalable. Because I'm taking a lot of risk by being an angel investor. And I want to make sure that this company can create a lot of value. And in order to create a lot of value, the company must expand rapidly, and expand far and great. So I want to know that this business model is scalable, it will multiply. It will, from one shop to 100,000 shops, from 10 customers to millions of customers. From one country, probably beyond the border, and going to multiple countries. I want to invest in a scalable business. Let's look at number six. Well for number six, I need to look at the financial projections. We mentioned this in the previous module, in a typical company, the profitability and the revenue are still very important. So I need to look at the assumptions of the projections, and I need the projections to look good. When I say good, it means the profit, the revenue are very decent, and the numbers are believable, and it will give a decent return on my investment. And let's look at the very last one, number seven. Now that's a giveaway, of course we are looking for the exit. But as an angel investor in the very early stage, we can't say for sure that this is how we are going to exit. What we can imagine, however, is that, I can imagine what kind of company would like to buy out this company that I'm investing. Would it be an industry giant that would want to take over this company at some point? Can I see this company actually get listed at some point, so I will get my exit and my return? So even though I'm not seeking the exit right now, I need to have some idea and I need to have a believable story that I will get an exit at some point. So here are the seven diagrams again, so remember, these are the criteria from the investor's perspective. So if you are the startup, the entrepreneur, can you convince your investors that you have all these boxes checked? If you can, I think you are in a very good position to seek investor.
