If you are a startup entrepreneur, you may be ready to take on some angel investors to further fund your endeavor. Angel investors usually invest in startups that are not quite ready for venture capitalists. Angel investors are those wonderful people who believe in what you’re doing before you are ready for the big time. You can read more about this progression on Startup Funding & How It Works. These are some details to remember before you pitch your possible angel investors.
Many times, angel investors will not only contribute money, but they’ll also contribute their expertise and networking connections. They can be a critical part of a startup’s ability to transition to the next level. First impression is very important since you will only have a few minutes to explain your business. In those few minutes, you will be judged by how you look and how you speak. If you are prepared, and if you’ve rehearsed your pitch, you will make it through those sticky few minutes.
According to an article on Inc. called How To Pitch Angel Investors, one of the biggest mistakes people make is not focusing on how the investor will make money. Instead, the entrepreneur rambles on and on about the technology or the business.
According to this article on Forbes called 8 Mistakes Entrepreneurs Make When Pitching To Investors, one of the biggest mistakes people make is not being brief enough. According to that article, you should be able to present your idea in one minute. If you can’t do it in one minute, it’s got to be pruned down or you run the risk of losing a potential investor’s attention. In reality, 5 minutes would probably be okay. I read many success stories that say as long as you come in under 10 minutes, you’ll be fine.
According to 10 Ways To Definitely Fail At Startup Fundraising, one of the biggest mistakes people make is not providing a realistic future revenue projection based on facts. Many times entrepreneurs can get caught up in their ‘dream building,’ which can lead to over projecting the numbers to an almost ridiculous level.
This chart called The Fundamentals Of Pitching To Investors will help you with a few tiny details, which could make a huge difference. It was created by Brian Wilkins for Entrepreneur. Just be sure that before you meet with your potential investors, you rehearse your pitch over and over again. That way, it will come out polished, and you come across as confident and passionate about your company (instead of stumbling over your words and being unsure of yourself). After all, you may only have one chance to get it right. Good luck!
Details To Remember Before You Pitch Angel Investors
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