All #AskJason: How do you judge startups in fields where you have no expertise?

TL;DR

Angel investors educate themselves by meeting with experts in the field, but investing in alternative medicine may present challenges due to lack of scientific evidence.

Transcript

okay welcome back another question as part of our 2016 kickoff s Jason episode this one is from Dan how do you or other angel investors you know judge startups in fields where you have no expertise I a traditional Chinese medicine which I'm assuming is Dan's field p.s i might be wrong about the particular field but you get the idea yeah of course w... Read More

Key Insights

• 😇 Angel investors rely on entrepreneurs to educate them about industries outside their expertise.
• 😀 Chinese medicine may face challenges in attracting investments due to a lack of scientific evidence.
• 🔬 Skepticism and potential legal issues can deter investors from investing in alternative medicine startups.
• 👨‍🔬 Startups in alternative medicine should prioritize scientific research to gain investor trust.
• ❓ Investors lean towards industries with scientific proof and established efficacy.
• 🥺 Exaggerated claims in the alternative medicine sector can lead to fines and investor hesitation.
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Questions & Answers

Q: How do angel investors assess startups in fields outside their expertise?

Angel investors rely on entrepreneurs in the field to educate them about the industry and its potential. They meet with multiple companies to gain knowledge and make informed investment decisions.

Q: What challenges does Chinese medicine face in attracting investments?

Chinese medicine, while an ancient field, is considered an emerging trend in the West. The lack of scientific evidence and double-blind studies make it challenging for angel investors to invest in the field, as they may be skeptical about its efficacy and potential legal issues.

Q: Can angel investors invest in fields that lack scientific proof?

While some investors may be open to investing in areas that are not scientifically proven, it is unlikely in most cases. Investors prefer industries with solid scientific backing to minimize risks and potential lawsuits.

Q: How can startups in alternative medicine overcome investor skepticism?

Startups in alternative medicine should focus on gathering scientific evidence to support their claims and efficacy. By conducting well-designed studies and clinical trials, they can build credibility and attract investor interest.

Summary & Key Takeaways

• Investors rely on entrepreneurs to educate them about industries they lack expertise in.

• Chinese medicine, as an emerging trend, may face difficulties attracting investments due to skepticism and lack of scientific proof.

• Investors may be cautious about investing in alternative medicine due to the potential for lawsuits and exaggerated claims.