What To Do And Not To Do When Pitching To Angel Investors

It is quite easy to find angel investors that are interested in finding great investment options. However, convincing them to put their money in your business is not at all easy to do. Most of the process will be connected to how you pitch the project. This will make or break your deal. It can make the angel investor interested to learn more or he can end up not being interested to even look at the data offered.

What Should You Do?

• Research

For starters, it is really important that you always do your homework when you seek financing from angel investors. You want to learn as much as possible about the type of investing done and what is preferred. You can end up losing so much time if you do not since you would talk with dozens of angel investors that would never invest in the type of business you have or at the stage you are at. For instance, if you run a dairy shop, NetBet would not even consider helping out.

• Understand/Know Commercialization Path

There are dozens of finance solutions for British businesses but the angel investor is not one that can be considered when there is just an idea present. The aspiring entrepreneur looking for angel investors needs to present what the product does, how it solves a need for a buyer and how it can reach the market, together with as many projections and stats as possible about commercialization.

• Staying Articulate

Many pitches will focus on details that are not necessary. It is important to always be articulate. You want to let the angel investor know exactly how you want to do what you want to do, how the market will be reached and always present how money will be made. Remember that the angel investors are mainly interested in making a profit so that is what you should present, how they can make a profit.

What Should You Never Do?

• Saying Something Is Conservative

As entrepreneurs share numbers one of the worst things that can be said is that something is conservative. The angel investor is the one that normally should cut numbers. He will want to see entrepreneurs that are willing to take chances and that are excited. The numbers that are used should be realistic but aggressive at the same time.

• Say You Have No Competition

Simply put, this is never the case. If an entrepreneur says there is no competition, the research done was improper or everything is just a lie. Remember that there is always competition and you should find out as much as you can about it.

• Focusing Solely On CPA

An entrepreneur should always know numbers. A huge pitch problem appears when the person that looks for investment does not really know how much is needed. There is this common focus put on CPA. That is not a good approach. When you let the accountant or the CFO explain financials, many angel investors lose interest.