An entrepreneur whose business plan includes seeking growth capital for a growing business — perhaps after initial self-funding or obtaining seed capital from family and friends — should be aware of the business and legal attributes an experienced “sophisticated investor” will look for. Regardless of whether the investor is an angel, an angel group, a venture capital firm or a family office, the sophisticated investor will have evaluated hundreds of opportunities, achieved liquidity in some, but also written off others as failures. This investor knows the key markers of a business equipped to grow sustainably.
