A | ATTRACTING AN ANGEL INVESTOR IS DIFFERENT FROM ATTRACTING A VC FIRM. For example, an angel investor knows their early investment will get diluted significantly in the future when VCs bring on growth capital. Therefore, an angel investor’s primary concern involves creating disproportionate value relative to their invested capital in order to minimize future dilution. For an angel investor, value creation can come from product de-risking or platform optimization, depending on the focus of the company. Product de-risking often comes in the form of a “killer experiment” that both enhances the probability of success and creates “sizzle” to attract future investment. Platform optimization typically relates to industrialization of the platform and/or a transformative business development deal.
MARTIN LEHR is CEO and cofounder at Context Therapeutics, a clinical-stage biopharmaceutical company dedicated to developing novel medicines for hormone receptor positive cancers.