Angel Investing

Investment Criteria

Investment Process

  • Management team
  • Market opportunity
  • Use of investment capital
  • Growth potential
  • Competitive advantage
  • Fit
  • Technology
  • Exit strategy

Management team

We look for teams of high-quality entrepreneurs with a track record of leadership and performance - either in the company’s specific industry or in prior entrepreneurial ventures. We also look at your team’s passion for and commitment to the new business idea, and your ability to inspire confidence among future stakeholders, including employees, potential customers, and investors. As we will be working together as partners, your team’s credibility is essential. In addition, your team must be open to and comfortable with receiving input provided by angel investors.

Market opportunity

We invest in solutions that address major problems for significantly large target markets (i.e. a $100+ million market). Your company must demonstrate a strategy to claim significant share of this market (i.e. 20%+). There are plenty of great business ideas - but not all businesses will generate returns that justify angel investor and venture capital financing. Therefore, providing a solution to a problem with a large potential market is essential.

Use of Investment capital

Funds must be used to accelerate your company’s achievement of key milestones that increase the company’s value. We often fund activities that include research and product development, building a sales and marketing infrastructure and hiring key executives.

Growth potential

We look for companies that can grow quickly and manage the scale necessary to succeed. Your company must demonstrate a plan to generate significant profits beyond the initial product idea. Do you have a strategy to achieve multiple sources of revenue? We also require well-conceived financial projections, based on sound assumptions, demonstrating consistent profits and cash flow growth.

Competitive advantage

Your company must have some proprietary features that distinguish you from potential competitors or provide barriers to entry that prevent other companies from capturing your customers with a similar offering. Attributes that convey competitive advantage include intellectual property protection, exclusive licenses, exclusive marketing and distribution relationships, strong brands, scarce human resources (i.e. knowledge and skills), and access to scarce raw materials.


Our group members - all accredited individual investors - have significant executive experience in a variety of fields. One of the benefits of working with angel investors is the active coaching and contact network that such investors can provide. As such, there must be a fit between members of our group and your idea.


We prefer to invest in first-of-a-kind new ideas, rather than incremental enhancements to common products and services. Is this a nice-to-have, or a need-to-have product or service? However, we approach highly complex, esoteric technologies with caution. The concept behind the technology must be proven and verifiable. Further, we avoid science projects that don’t demonstrate a clear path to commercialization. Any breakthrough innovation must be accompanied by a strong business plan.

Exit strategy

Our members typically seek returns of at least ten times their initial investment, within eight years. This level of return on investment is essential due to the high risk and likelihood of failure among early stage ventures. Thus, a clearly articulated exit strategy - how angel investors will extract such returns - is essential. For example, do you plan to sell the company to an established corporation in your industry? Or will your exit be through subsequent rounds of financing - venture capital or the public markets? Angel investors are not just interested in the strategy you select, but more importantly in the how - the operational strategy that shows specific steps you will take to achieve the exit.

Step 1:  Evaluation

• In approximately four weeks following the submission of your business plan, Vail Valley Ventures, LLC members will review and discuss your company’s business idea and market potential.
• The Selection Committee will review all members’ feedback, and determine if your company is ready to present at a Vail Valley Ventures dinner meeting.

Step 2: Dinner Presentation 

• If your company is successful in Step 1 of the evaluation process, you will have a chance to meet the Vail Valley Ventures team, and present your business to the group in a 30min presentation and Q&A session.
• The following morning, interested investors will meet with you to better understand your business and ask questions. Typically, approximately 4-8 investors show up for these “round-table” discussions.
• After the breakfast session, the interested investors will decide if they would like to continue with further due diligence of your company.

Step 3: Due Diligence

• If your company is successful in Step 2 of the evaluation process, a due diligence coordinator will work with you to answer various questions that interested investors might have about your company and business.
• Questions are usually in but not limited to the following areas: 
Technology and Product Efficacy
Market Size and Need
Business Model and Sales Channels
Management Team
• If your company is successful in this due diligence phase, interested investors will then contact you via a coordinator and begin negotiations