Entrepreneurs should expect a number of questions about marketing and customer acquisition. But, fundamentally it’s about traction and the reason that angel investors care about this is because we want to make sure that the market demonstrates a need for the product or service that you want to bring out to the market. And, this can take a number of different forms; you could have a bunch of surveys that you sent out to people that say, ‘yes, I want this’.
You could have a kick-starter campaign. You could have any number of ways to demonstrate that there’s a market for your idea, but you need to have something. And what will differentiate an entrepreneur that gets funded or gets more funding from an entrepreneur that doesn’t, is the ability to demonstrate that traction or that market desire for their service because ultimately the angel investor wants to give you money so that they can get more money back.
That’s the idea of an investment and if there’s no market for it, you’re giving your money away and you’re probably not going to get much of it back.