Want to build a billion-dollar startup? Learn about the 5 Ts

3 min readMar 11, 2022

The Founder & CEO of People Group, Anupam Mittal, has recently appeared on the Indian reality show Shark Tank India as a Judge. I invited him to my podcast because I knew we would have a good time together. And we did. As part of our conversation, Anupam shared his fascinating entrepreneurial journey and explained the 5 Ts of angel investing.

Here is an extract:
Angel investing requires a lot of work and dedication. Anupam elaborates on these five elements, which every investor should pay attention to and follow rigorously every time they invest.

1. TAM

In the production of a product or service, the total addressable market (TAM) is the real revenue opportunity available to the company if 100% of the market share is achieved. It helps decide how much effort and funding a company or individual should put into starting a new business.
Startups and existing businesses need to consider the total addressable market to determine how much funding and effort is required to prioritize specific products, customer segments, and business opportunities. TAM provides company executives with a viable value proposition for potential investors and buyers.

2. Team

Individuals working alone cannot achieve as much as a team, and it goes without saying. However, a team can accomplish far more than its members could achieve through teamwork.
The ability to lead is essential when securing investments of any kind. An angel investor backs the people who make up a business, and they demand evidence that the business is in the hands of trustworthy, competent, and observant leaders. A well-rounded management team will typically include human resources, manufacturing, accounting, sales, and research professionals.

3. Timing

The majority of angel investors will actively participate in the venture they invest in. Mentoring the company’s leadership, serving on its board of directors, or playing an active role as a manager are all ways to do this. Angel investors make these additional investments to help ensure a return on investment and remind themselves that they seek new knowledge, experience, and connections through the companies they support.

4. Traction

Investors will look for early traction or customers as one of the most important things. Investor financing will be easier to obtain for a company that has established early traction.

A few examples of early traction are as follows:

Beta testing
Pilot customers
Strategic partnerships
Customer testimonials

5. Technology

The technology you use must be an asset — it must help you anticipate, manage and respond quickly to change. When it comes to technology, it should make life easier and give you flexibility so you can quickly adapt to changing business needs, whether you’re expanding your infrastructure or adding new computers, devices, and applications to make your workers more productive.
Technology can help drive your business forward — making you stand out from your competition — for small and mid-sized companies.
Your company’s productivity can be significantly improved with the right technology. You can stand out from your competitors by modernizing your IT environment, no matter how big or small. An angel investor will look for this point aggressively.

Although a team, technology, or idea is well-suited to the market, finding an angel investor who shares the company’s vision can still be challenging.

Angel investors favor teams that combine professionalism with a deep commitment to the product. Angel investors demand a business plan, research time, and a worthwhile stake in the businesses where they place their money.

Listen to the full episode here.