BROADCASTS.com

Here are three key pointers for investors who are funding startups. The team is the most important part of a startup. Diligence should focus first on the team, not the product, space, or anything else. Monitor the startup for three months before investing to gauge momentum and traction.\xa0 You need to peel back enough layers of the onion to know what\u2019s there.\xa0 Ask lots of questions -- your mantra should be \u2018let\u2019s peel the onion.\u2019 The biggest challenge in angel investing is not that the startup goes under but that it turns into a lifestyle business.\xa0 Historical returns indicate that 10% of your investments will be home runs, 15% will be singles/doubles, 10% will go out of business, and 65% will turn into a lifestyle business.\xa0 To avoid your investment turning into a lifestyle business, ask for a redemption right at investor sole discretion.\xa0 If they go on the payroll exit, you can exit with the redemption right.\xa0 \xa0The Payroll exit, is when a startup gives up trying to make a go at a venture exit and decides to sit back and just take above market salaries for their exit.\xa0 This leaves the investor on the equity exit with no clear path for a return. \xa0Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!