What should startup founders consider when looking for suitable investors?

1) Synergy of the Investor Group should match with the Startup's Ideology and product.
2) Investor should help to support and grow the Startup with his network and influence.
3) Investor who is willing to be with the Startup for a long duration (till the time the startup reaches at a maturity level and become profitable for few quarters with self sustainability)
4) Startup should avoid such Investors who may be looking at a quick lottery mindset. After all this is a commitment and trust between two sides for mutual growth.

I believe startup investors should consider three different approaches when seeking investors:

1) Competency-driven investment: If the startup team is competent and capable, they should look for investors who can provide additional capital to operationalize the company, cover expenses like salaries, and help get the business up and running. The investor's expectation is to eventually receive a return on their investment.

2) Supportive co-founder investment: In cases where the team requires professional and technical support, they should seek co-founders who possess both financial resources and expertise in relevant areas. These co-founders can bring in not only the necessary funds but also knowledge, skills, and guidance to bolster the startup's growth.

3) Idea-focused investment: If the team has a compelling idea or vision but lacks the necessary skills to execute it, they should aim for investors who are financially well-off. These investors can inject capital into the company, which can then be used to attract and recruit the right talent. In this scenario, the investor's role primarily involves providing funding and waiting for the company to become profitable, thereby carrying a higher level of risk.

Please note that these approaches are not exhaustive and the specific investment strategies may vary depending on the nature of the startup and its unique circumstances.

As an angel investor, I would suggest they look for an investor that can help them grow their business above the funding. It’s about the network of the investor, they understanding and passion for your business and the chemistry, do you see yourself managing a crisis with them at the board?

It is a dating exercise in the end, so do you really want to hang out with them? I look at my capital table today and  2% to 5% of my investors are active in the company. My lead investor is in it every week — we're meeting multiple times, and not about status updates. The conversation is: how can I help? What are you thinking? How can we adjust this partnership?

I can call him and we can just get through whatever we need to figure out. That's such a big difference from traditional arrangements, where you hand in your recorded report and tell them your metrics, etc., rather than discussing how you're going to disrupt the market. That is a big deal. Those people are also the ones that will say, "Okay, then I'm willing to write another check." But it also comes down to what stage you’ve reached.