Deal sharing and startup investing – how angels assess opportunities

Early-stage investing is high risk, and many investors struggle to consistently identify which startups have real long-term potential. It’s easy to be influenced by hype, personality, or short-term traction without fully understanding the bigger picture.

In this session, Michael McDowell, Investor Commercial Lead at SeedLegals, joins Matthew Ward, Investment Manager at Clarendon Fund Managers, to break down how investors assess founders, traction, market opportunity, and long-term growth potential. Plus: how deal sharing can help angels access stronger opportunities and make more informed decisions.

Read on for the key takeaways, or watch the full webinar to hear the discussion.

Key takeaways

Strong founders are often the biggest predictor of success

• Early-stage investors should assess how founders think, execute, and respond to challenges, not just the idea itself.
• Founder–market fit, resilience, and adaptability are often stronger indicators than polished presentations.
• The best founders combine conviction with the ability to learn and evolve quickly.

Traction should be analysed in context

• Revenue and growth metrics matter, but they rarely tell the full story on their own.
• Investors should look at retention, engagement, customer behaviour, and momentum over time.
• Understanding why traction is happening is just as important as the numbers themselves.

Market size shapes long-term potential

• Even strong businesses can struggle if the market opportunity is too small.
• Investors should evaluate whether a startup has room to scale significantly over time.
• A growing market with strong demand can create powerful long-term tailwinds.

Deal sharing improves access and decision-making

• Collaborating with other investors can help uncover stronger opportunities and reduce blind spots.
• Sharing due diligence and insight allows investors to benchmark their thinking before committing capital.
• Building the right investor network can be just as valuable as sourcing deals directly.