How to impress angel investors
Firstly, are angel investors the right way to go?
Before thinking about how to access angel funding, you must consider the pros and cons of angel investors. Their financial help can be supported by industry knowledge and a strong network of connections to fuel further success. However, it could cause potential disagreements regarding strategies, as well as equity loss.
Nevertheless, they are a good alternative that may be accessible when other forms of fundraising are unfruitful. Meanwhile, many find that the mentorship aspects give this type of funding an advantage too.
Top tips to impress angel investors
If you do decide that angel investors provide the desired choice, you need to approach them in the right way. While your business is in its infancy, even early stage investors have high expectations of entrepreneurs.
Only a detailed strategy will achieve the desired results. Here’s how you can get it right.
Know where to find investors
After locating the best places to find investors, you must also consider the best ways to open the interaction. From writing cold emails to in-person chats, a strong start will set you up for success. Some angel investors are actively looking for businesses. So, an impressive website and strong SEO strategy can serve you well. It also sets a professional vibe.
You don’t approach angel investors like you approach a bank, for example. So, knowing how to instigate things is vital.
Support yourself with eye-catching materials
When meeting with potential investors, you should look to create a positive experience. Attractive visual aids are the perfect solution. Aside from setting a professional vibe, it is the best way to keep them engaged. Likewise, investors will appreciate having info presented in a clear and easily digestible manner. After all, this isn’t their only business matter.
Designing quality books and booklets for investors to take with them is ideal. This can include key details, graphs, and info about your business. This can familiarise them with the opportunity you present or clear up anything that they missed during the initial meeting. Of course, it keeps your startup fresh in their mind and provides your contact details.
It makes sense to hire a graphic designer to ensure that your branded materials aimed at investors create maximum impact.
Know your business
The best way to impress any investor is to know your business. Showing that you know where things stand, as well as the direction they are headed, will aid your cause. The ability to showcase your knowledge confidently and consistently creates greater belief in what you have to say. This is especially true when underpinned by industry knowledge.
Expressing your business idea clearly is easiest with a business plan template. You must also have an in-depth understanding of everything that has happened to this point. As well as clear breakdowns of how new funds would be invested. Any proof of backing from relevant authorities or proof of big contracts is great. Don’t be shy to celebrate successes.
You should also get a business contact to review your business plan to see if they can paint a clear image of it from this data.
Sell the experience
First and foremost, angel investors invest because they want to make money. However, the majority choose startups that make a positive impact. This could come from changing a community for the better. Or spearheading industry growth and delivering personal joy. Either way, you should try to tap into this psychological aspect.
Is your startup one that can be a catalyst on the road to net zero emissions? Or maybe it will help an underrepresented demographic or aid human health? The emotional connection to the brand’s vision can go a long way to securing funding. An opportunity to do fun things along the way will often appeal too, especially to the wealthiest investors.
Transforming this from a business opportunity to a life experience that makes a profit should yield great results.
Build an honest business plan
When approaching investors, angel or not, many owners fall into the trap of unrealistic projections. While it’s great that you have a genuine passion and belief, unrealistic valuations make you look deluded or ill-informed. Either way, it leaves investors feeling as though you are trying to trick them. It is very off-putting.
Your business plan should include realistic and honest projections. This will create far greater trust, which then gives them more reason to have confidence in the other aspects of your plan. Accurate valuations will also tie in nicely with the rest of your business. This makes it easier to field any questions that may come your way during the meeting.
Besides, realistic projections are easier to meet and exceed. When you do, the hopes of gaining future cash injections from your investors will soar.
Research the investor
Your business plan and marketing materials are largely focused on the company itself. However, you need to remember that funding comes from a specific person or source. As such, some of your pitch or material should be tailored to the individual. Otherwise, a lack of relatability and resonation could cost you dearly.
The great news is that researching business people on LinkedIn or their websites is easy. Once you have built a clear understanding of them and the types of startups they support, you can tailor your approach. Appealing to them is as important as showcasing the potential of your business. Not least because it can make them feel that their role will be easier.
The truth is that most angel investors will get approached by many startups. This step is one of the best ways to stand out from the crowd.
Invest in yourself
Angel investors won’t only base their thoughts on their opinion of the business plan. They will also cast judgements on entrepreneurs. Frankly, this begins even before they have met you, which is why self-improvement should be a priority. Aside from impressing angel investors, it can be a key step to winning clients later on.
For starters, you can invest in your appearance. Adopting a healthy lifestyle will help unlock improved natural looks. Meanwhile, finding the right attire for business meetings can work wonders. When supported by a winning hairstyle, you should be positioned to cast a more confident figure. This can instantly see the investor put more faith in you.
Continuing to develop your business skills will highlight that you have the right mindset and passion for success.
Master human interactions
Potential investors will make instant judgments based on your appearance and general vibe. Nonetheless, their opinions can be heavily influenced by the quality of the interactions that they share with you. Becoming a master at human interactions in this context will go a long way toward steering talks to the intended outcome.
Developing your body language and general communication helps you command respect. Still, you must remember that angel investors want to work with people that they like. So, building a rapport through anecdotes, relatable knowledge, and a positive attitude will serve you well. If they want to help you as a person, they’ll look more favourably on the ideas.
Active listening will help you provide the answers they need while your pre-meeting research should be useful too.
Support yourself with board advisors
Angel investors can also be swayed by others. Sadly, though, seeing a large number of investors may be off-putting. This is because they’ll wonder why you haven’t been able to gain the desired level of funding from this network. They’ll also question whether other investors may derail the business due to contrasting thoughts.
Conversely, though, a strong team of board advisors can significantly help. Seeing a strong team behind you will inspire more trust and confidence. Interactions with partners and advisors will highlight the consistent thinking across your team. Assuming that the angel investor is impressed by the business plan, and you, this should bode well.
If you want to make the most of this support network, though, you must ensure that they are available to attend meetings.
Be positive and persistent
Finally, you must remember that it may take several meetings before getting confirmation. Likewise, it may be necessary to meet with multiple investors before finding the right fit. Do not give up or let your standard slip.
The final word
Under the right circumstances, angel investors are the perfect choice to give your startup the lift it needs. Naturally, though, they won’t part with their capital unless they have reason to believe in the business and the entrepreneur behind it.
Even the tips above can’t guarantee success. Still, they will give your business the best hope of getting the financial and strategic support it deserves.