Whilst an angel investor won’t be the first funding option that comes to mind when seeking investment, they’re a compelling alternative to more traditional avenues, as they can offer insights from their own experience in the business world, at the same time as injecting cash into your company.
If you have managed to line up a meeting with an angel investor, you’ll want to make the most of the opportunity. Here, 1st Formations share their advice for pitching to angel investors.
Research your angel
As soon as your meeting has been arranged, study everything you can about your potential investor. How did they make their money? What businesses are they currently involved with? Have they had any failures? How did they get started in business? Where did they study… if anywhere?
Use the Companies House ‘Search the register’ facility, LinkedIn and good old-fashioned Google to rustle up all the information that you can.
If you spot any similarities to your own career path, by all means, gently include these in your presentation – drawing the dots from their experience to your company. However, the key goal here is to get a feel for the investor so you can adequately prepare for your meeting with them.
Be confident
Investing in your company is the ultimate show of confidence on the angel’s part. To receive this, you must not only have confidence in yourself, but you should also be able to project this during your pitch.
Practice your presentation to the extent that you no longer require notes. Pre-empt their questions and prepare resolute responses. Triple-check your numbers and ensure that they’re watertight. Make a backup of your presentation that you can easily access in the event of an IT issue. Leave nothing to chance.
Even if you’re not the most confident person by nature, by knowing that you’re truly ready for the meeting, you’ll be more relaxed and more personable. Remember, they’re not just investing in your company, they’re investing in you too.
Tell your company’s true story
It’s all too easy to jump straight into your pitch and talk about where you are now, what you want to achieve in the next five years, and how the angel can help you do this. However, this should only make up part of your presentation.
You need to tell your story. Cover the great stuff, such as your lightbulb moment, the problem your business is fixing and the great people you’ve met so far along the way, but don’t skip the negative aspects – the hurdles you’ve jumped.
Your presentation shouldn’t be a rehash of your website’s all-so-positive ‘About us’ page. The investor has probably looked at this. Instead, you need to demonstrate your openness and present the true story of your business so far.
Don’t forget your team
If you have a team behind you, whilst it’s not a good idea to have them accompany you to the meeting, you shouldn’t exclude them from your pitch.
As a business that’s looking to grow, your team will be of fundamental importance and should be viewed as an asset. Showcase the talent you have assembled so far, and demonstrate your skill in team-building and general management – giving the angel two more reasons to invest in your business.
Show what the money is for
Go into the meeting with a clear idea of how much money you want, what the money will be spent on, and in turn, what that money can help you achieve.
If the angel is interested, they will no doubt have their own ideas about how much money they’re willing to put in and what it should go towards, but you need to exhibit your assertiveness by showing that you have a lucid plan.
Any uncertainty does not look good, and the angel will suspect that their money will be frittered away.
So there you have it
Pitching to an angel investor represents a fantastic opportunity to grow your business. Follow the tips set out in this post to give yourself the best possible chance of a successful meeting.
As a bonus piece of advice, remember that any consultation with an angel investor is a chance for you to assess them too. If you are concerned by any element of their character or the terms on which they wish to invest, don’t be afraid to express these – and if necessary, back out of the conversation.
We hope you found this post helpful.
With over 1 million companies formed, 1st Formations are the UK’s favourite company formation agent. If you’re looking to set up your own limited company, you couldn’t be in safer hands.
