|Do you have a new business concept but lack the necessary capital to grow it? Have you tapped the resources of family and friends but still need additional financing for your business venture? If so, you may want to consider calling on an angel—an angel investor, that is.Angel investors provide early stage seed funds to start-up companies in exchange for returns and involvement in the company— such as serving on the board of directors. Angel investors contribute approximately 90% of seed capital to aspiring businesses. In fact, just last year, angel investors contributed a total of $22.5 billion to more than 66,000 entrepreneurial ventures. That is a lot of funding! And your business idea could be the next recipient if you can convince an angel to take a leap of faith for you. Keep reading to find out more.|
Secure a meeting with an angel investor
Presenting to angel investors
Below is a breakdown of what information should be covered in your presentation in order to make the most of your 10 minutes of glory:
Explain what your company does. Briefly explain the problem and how your idea solves it.
Tell your story. Who are you and who are your key employees? How did your business venture come to be?
Describe in detail what the need (problem) is and how your product or service fulfills it. Explain who, specifically your customers are.
How does your product or service fill a need or solve a problem. Now is the time to pull out your prototype or product sample and/or to share focus group or survey research.
What makes you different from the competition? Who is the competition?
Share your business plan. This is your chance to tell potential investors how your idea will make money. And how you will manage it going forward.
Provide an estimate of how much funding is needed, return on investment (ROI), exit strategies, etc..
It is important to be prepared to discuss your business idea in detail and articulately. Research, planning and practice will help. For more information on pitching angel investors, check out our Blue Paper®.
Taulli, Tom. “How Angel Investing Works.” Bloomberg BusinessWeek. N.p., 10 Oct. 2008. Web. 19 Oct. 2012.
Brown, Carolyn M. “How to Meet Angel Investors.” Inc.com. N.p., 20 Sept. 2010. Web. 19 Oct. 2012.
Lavinsky, David. “How Small Businesses Can Get Angel Financing | Small Biz Daily.” How Small Businesses Can Get Angel Financing | Small Biz Daily. N.p., 17 July 2012. Web. 19 Oct. 2012.
“The Perfect Pitch: Making Your Case to Angel Investors.” www.4imprint.com. N.p., 27 Sept. 2012. Web. 19 Oct. 2012.
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