Finding Angel Investors
Five Tips for Finding Angel Investors
I was just talking with an entrepreneur frustrated that he cannot find angel investors, I offered him these suggestions for getting an angel investor to provide you with capital:
- You never know when you will have the opportunity to meet an angel investor so have a well-prepared, concise elevator pitch.
- Reach out to angel investors networks, you may be able to connect with an interested contact.
- Look for angel investors conferences where entrepreneurs are allowed to propose their idea to interested angel investors, for a fee.
- Have a thorough, professional business proposal.
- Network with high net worth individuals and investors through linkedin.com or similar networking sites.
This should get you on your way to meeting some angel investors, but it is difficult so be prepared for a difficult process. Good luck!
Pitching Angel Investors
Tips on Pitching to Angel Investors
The initial presentation of your startup company to venture capitalists or angel investors is a crucial aspect in successfully expanding. The Instigator Blog offers 5 quick tips on pitching venture capitalists and angel investors:
- Briefly Tell Your Story: You will quickly lose your audience’s attention if you are not entertaining or if you drone on for too long. Share your story in an entertaining way about how your company formed and why you need the investors’ money.
- Change the Pace Throughout: Speed up during the overview and less detailed parts of your presentation but slow down for the more complex and important areas. This allows you to captivate your audience while still delivering the details.
- Have Stylish Slides: Image isn’t everything, but it is something. Having “sexy” visuals will help keep your audience’s attention, so adding some style to your slides can go a long way for your presentation.
- Don’t Over Emphasize Your Product: Investors are interested in you and your company primarily, so don’t dull your investors by listing all the benefits of your product.
- Finish Strong: Although many save all those little details and projections for the end, it is better to end with a memorable finish that leaves your audience excited about your and your company.
Angel Investors
Angel Investors Definition
If you are wondering, what is an angel investor? Then here is a short definition of what an angel investor is and what characteristics generally define angel investors:
An angel investor is a wealthy individual who provides capital to an expanding small business. An angel investor typically invests his own private money, unlike collective venture capital funds. The angel invests in the startup process and has a personal stake in the company’s success.
Similar to venture capital investments, angel investors are vulnerable to a high risk of failure, but if the company is successful the possible returns are equally high. Startup businesses often fail, costing angel investors large sums of money. Angel investors compensate for this by demanding a high percentage of any success. Angel investors are an important way for small businesses to gather the capital necessary for major expansion.