When you are preparing to get an investment from angel investors, you may only have one chance, so don't blow it by not having a potentially winning pitch. This article will tell you ten things to remember as you prepare your pitch for potential investors.
Ten things to prepare to pitch to angel investors
Start with a passion and desire to succeed.
Investors will only expect you to have some answers at this stage, but they will want to understand why you're passionate about your idea.
Passion and drive are two of the most important things you can have when pitching to angel investors. You want to come across as someone genuinely excited about what they are doing and genuinely desires to see their project succeed. This will help build trust with your audience immediately, which is vital if you want them to invest in your idea.
Remember that angel investors are putting up their own money, so they need to be convinced about what you're telling them. Be true to yourself when selling your work. If you're trying to present a false image of yourself, people will see through it and lose your trust.
Be prepared to work with angel investors.
Before you try to find Angel investors, look into the mirror. Are you open to changing what you do based on other people's ideas? Are you so stubborn that it's counterproductive? Do you often argue to win, or are you willing to consider the other person's point of view? Can you describe the direction your startup intends to take in the coming years? Do you track the inputs and outputs of resources? This set of questions will help you understand if you are ready to find an angel investor. Consider that only a few angel investors will invest in an entrepreneur who cannot grow and learn as a leader.
Be clear about why you're starting your business.
It's essential to show why you started your business, who it is for, and where you want to take it. Ask yourself: What inspired you to start this business? What problem are you solving? Who are you helping? How do your products or services fulfill a need?
Wise investors listen to their instincts and use their gut feeling as a guide. You are halfway there if you can stir that gut feeling with your pitch and inspire potential investors with your vision or mission.
Get initial traction for your startup.
Many people have ideas, but traction is what validates them. While some investors may be moved by a great story or an impressive pitch, most will want to see facts and figures to back up what they are being told.
If you still need to launch your business or it's new, don't let yourself fall into the trap of thinking you can't mention traction. Every company should be able to prove that people want what they're offering. Think about how you can show that your project is making progress.
Research and refine the target.
People do businesses, and while you need investors' money, they also bring their time and commitment to your project. So, make sure you know what your potential business partner is like. Check out their profile, website, and blog; read their stories, interviews, and anything that helps you understand your potential partner.
Chat with other startups about their relationships with investors, set expectations, and ask yourself the questions necessary to get your business angel fundraising process off the ground.
Create a business plan for your startup.
Passion, purpose, and a great idea are all well and good. But you also need to be able to back up your ideas with logical arguments and evidence. Make sure you can show the investors that your business can scale and grow significantly. Demonstrate that the unit economics behind your business stack up. Investors want to see multiple returns on their investments.
Find out how you can benefit from angel investment.
Business angels are ideal investors for startups—they can provide immediate support that would otherwise take time and resources. Having an experienced entrepreneur or specialist in your business can save time and money. You can learn from their mistakes, avoid the pitfalls they fall into, and take advantage of knowledge gained through experience.
Generally, after this phase, startup companies with a solid foundation of money and knowledge move on to new investors who are prepared to offer funding at a higher level. Before you decide whether to avail yourself of the experience provided by business angels, consider whether your targets have a previous mentoring history and whether you can see the value of such a development direction.
bet on a fast investment process
Angel investors usually make investment decisions more quickly than VC funds, and their investment process is much less complicated. However, venture capital firms have their procedures for making investments. They are generally interested in later stages of development after traction is more prominent and your solution generates revenues and profits.
Find relevant angel investors.
These steps will help you identify and pitch your startup to the right business angels. Remember that you'll need to update your pitch and tweak it as you learn more about each potential investor.
Finding the right angel investor match is the ultimate part of starting a new business. It's not easy but look at it as a process that will give you valuable information about your business's direction. Remember that only some of your meetings with the shortlisted investors will be successful, and you should still be prepared for some rejections.
Some startups are happy to share their pitch decks and meeting notes with investors, so it's always worth asking the ones from your industry about their experience with specific investors. Pitching angel investors can be a long, frustrating process. However, if you pitch to multiple investors at once and keep moving on to the next one if the current investor isn't interested, you will find an angel investor who is a good match for your startup.
Learn where to find business angels willing to invest in your startup.
Business angels are much more involved in startup events than you think, so it's an excellent opportunity to network and attract potential investors. As individuals, angel investors usually belong to a network of other business angels like TechAngels.
Raising money requires good planning and realistic expectations. This is where, besides mapping and charting and measuring, and assessing, entrepreneurs exchange ideas and help each other grow.
Ultimately, a pitch begins with the entrepreneur. The entrepreneur must be well-prepared to address any questions that may come up in the investor's mind. They must answer those questions succinctly and clearly, and they must do so so that the investor can see how their opportunity is unique, viable, scalable, and profitable.
