Out of every 4,500-5,000 ventures that approach Mumbai Angels every year for their funding requirements, less than 2%, that is, 50-60 get showcased to our members.

But who makes the cut?

Here’s what makes the best start-ups for us:

A strong founding team is everything: Teams with the grit to build a business over the years, strong track record and sectoral experience are key.

Past experience in building new businesses is a great plus. We also love two-founder companies.

Market opportunity has to be large: The companies that have given us great exits are the ones that have been targeting real problems for significantly large target markets.

A great team working in a small opportunity will tire out and, eventually, give up. Company must have some proprietary features that distinguish it from potential competitors, or provide entry barriers to prevent other companies from capturing its market share.

High growth sector: Companies operating in sectors that are on a high-growth trajectory, and are expected to be in the radar of VCs and PEs.

Funds raised are for accelerated growth: Companies that raise funding with very specific understanding on how they will use the funds, and stick to it, are winners. If there is a pivot, it is because it is thought-through deeply and not because the earlier idea was half-baked. Also, the company has to scale quickly enough before the funds run out.

A clearly articulated exit strategy: This is not just a pitch slide, it defines how successful entrepreneurs think through their company’s journey, with a clear goal in mind: How to create wealth for themselves and for the investor.