UNDERSTANDING WHAT IS A GOOD IDEA

As both an investor and investee, Claire knows exactly what Angels are looking for when entrepreneurs approach them seeking financing. The biggest challenge he has noticed is that many entrepreneurs present ideas – not even actual businesses – that are not fully formed or thought out.

“What do you need to do to get somebody to take your idea, in its very nascent form, seriously? The first thing is having some understanding of what a good idea is, and whether that good idea can be a good business,” he said.

In the absence of a wealth of life and/or business experience, particularly for young entrepreneurs, Claire suggested that they surround themselves with people who have this kind of wisdom to share, to point out whether or not the idea or business is strong.

“The first thing I would say to an entrepreneur looking to see if their idea is investible is pressure-test it by talking about that idea to other critical business people. What a lot of young entrepreneurs go through is this fear that if they talk about their idea with somebody, they’re gonna steal it, and that’s just immaturity. Entrepreneurs understand that ideas are a dime a dozen. Execution is what matters. And there are very few new ideas anywhere in the world, so it’s about somebody’s ability to execute an idea well,” he said.

“Frankly, if somebody can execute it better than you, then in a true market environment where the fittest survives, they should have the business, not you. Entrepreneurs should focus more on exchanging ideas with people, sharing ideas to see if theirs is actually good. That alone can help you begin the process of getting your idea to become more investible, because now it will benefit from a collective of experiences.”