How to Market Your Business to Angel Investors

Angel Investors can mean life or death for small companies, and can give your business the urgent capital that it needs to grow and develop. There are a few things that you can do to help attract investors to your company, but the main thing is to make sure that you make people believe that they will get a solid return on their investment. There is no way that people will pump money into something unless they are reasonably certain that their money is safe, and that it will grow in the future.

What type of investor do you want?

Since angel investors are all individuals, there is no one-size-fits-all way of attracting them. Before you do anything to attract anyone, you need to decide exactly what type of investor that you’re looking to attract. Are you looking for someone who is excited by the prospect of creating something new, with a real passion for the product or service you are providing? Are you looking for a pseudo-philanthropist, someone who wants to see a good cause being undertaken, who is not so driven by profit? Do you want somebody who is purely interested in figures; who will be pushing for high returns? Or are you looking for something else altogether? Once you have decided exactly who you want, then you can start to focus on attracting your investor.

Focus your mission statement

Make sure that everything your business does is focussed around what you want to achieve. This should be something important to you and the business, but also should be something that your desired investor will be able to latch onto. Everything about your business should be coherent, make sure that none of your motives contradict each other and that you have a clear business identity.

Financial Security

If you have to hire extra help, then do so. Your books will have to balance perfectly, with absolutely no loopholes. If an investor finds a problem with your numbers then they will pull out straight away. Your finances have to be honest and correct or you won’t stand a chance of attracting investment.

Active Involvement

Make sure you show any potential investors that there is room for them to be actively involved in your business. There are very few investors who will be happy to part with their money and then just sit back and wait to see what happens to it. Let them know that they will be consulted on major decisions and that they can see first-hand what is going on in the company.

Exit strategy

There will be a point at which your investor will want their money back, and the profits that you have generated for them. They will want to see before they invest that you have an exit strategy lined up for when this eventuality does occur. Make sure you have thought through the process of how the business will make the transition to cope without the involvement of your investor.

At the end of the day, if you have a solid business plan which is destined for profit, you should be fighting off the investors. Just make sure that you do everything you can to make your business look attractive. Don’t let small mistakes get in the way of a huge opportunity for you and your business.

About Richard McMunn: Richard is the author of this post and owner of www.How2become.com, the UK’s leading training and recruitment specialist for careers. The focus is on providing applicants with the knowledge they need to pass any selection processes. The site currently offers over 140 different titles. You can also engage with How2become on Facebook

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world: 

  • Liquor.com, a site featuring award-winning articles, hand-selected cocktail recipes & bar guides, bags $3.1M Series B funding
  • AcuityAds, which uses real-time bidding for advertisers to bid on ad time just before a consumer loads a webpage, raises $3M funding
  • Chairish, an online marketplace to buy and sell pre-owned furniture, has raised a $3.2 million seed round
  • Kissmetrics, a web analytics startup that helps small e-commerce companies make data-driven decisions, has raised $7M funding
  • Nifti, a new shopping service that helps you keep track of when items you want to buy go on sale, has raised $800,000 seed funding
  • RedMart, an online grocery service in Singapore, has secured nearly $3.5M Series A funding to grow the business
  • Swell, a new mobile listening experience for news & information that learns what you like as you listen, raises $5.4M Series A funding
  • TB Biosciences, which is developing a point-of-care test for the detection of tuberculosis, has closed $1.5 million Series A financing
  • Maker’s Row, the marketplace that connects American manufacturers with businesses, has raised $1M seed funding led by Comcast and Index
  • Viableware, which designs software & hardware products intended to replace traditional bills in restaurants, lands $6.5M Series B funding
  • KartRocket.com, a do-it-yourself (DIY) e-commerce platform for Indian SMEs and retailers, has raised seed funding
  • Riskive, a stealth-mode cyber security technology start-up like Fully-Verified, has secured $2.2M in seed funding
  • Panjo, a marketplace for the world’s most ardent auto, sport, and hobby enthusiasts, has raised $1.6M seed funding
  • NatureBox, the leading online service for healthy snack food, has secured $8.5M Series A funding led by General Catalyst Partners
  • LiveMinutes, an online collaboration service you can use for meetings and web conferencing, has closed a $1.4 million seed round
  • Geepers, whose vision is to create the primary geo-physical address protocol in the digital world, has secured angel funding
  • SnapLion.com, a platform which enables users to develop mobile applications, has raised funding from venture funds and angels
  • Crowdly, an online platform that helps big brands promote themselves on Facebook, has raised $1.2M seed funding
  • Hall, which provides a cross-platform, cross-device messaging service to businesses, has closed $5.5 million Series A funding
  • TheShoppingPro, an internet-based startup aiming to make the online shoppers’ life easy and rewarding, has raised Rs 22 lakh angel funding
  • Addvocate, a service that helps companies put some operations management behind its social media efforts, has closed $2M Series A funding

To get regular updates, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News:

  • Greater angel collaboration and London-bias identified in Deloitte and UKBAA report: https://ow.ly/n2Dhg 
  • New SEC rules could kill most angel investment in US, according to David Verrill, board chairman of the ACA: https://ow.ly/n2FWO 
  • Here are the 20 the most capital-dense start-up communities in the US, according to new research: https://ow.ly/n2GAV 
  • New SEC Rules Could Kill Angel Investing, Hurt Startups & Hinder Job Growth: https://ow.ly/n2HeE 
  • Kim Dotcom eyes venture capital fund for privacy startups: https://ow.ly/n2GZr 
  • Infographic – The Q1 2013 Halo Report, a national survey of angel group investment activity in the US: https://ow.ly/n53OZ 
  • $2 Million Michigan Angel Fund Begins Investing in Early Stage Companies: https://ow.ly/n56cS 
  • Enterprise Ireland-backed venture capital firms invest €54m in 135 firms in 2012: https://ow.ly/n88Lg 

Business Plans & Pitching:

Fund Raising:

Marketing & Social Media:

Start-Up & Entrepreneurship:

To stay updated, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world: 

  • Vaultize, a cloud-based enterprise file sharing and sync (EFSS) and mobility vendor, has raised Series A funding from Tata Capital
  • Yellloh, a web-based platform dedicated to elevating the level and quality of online discussions, has closed seed funding
  • SoThree, the developers of Umano, the app that’s revolutionizing the way you listen to articles on the go, has raised ~$1M seed funding
  • SnoopWall, a patent-pending antispyware program that blocks remote eavesdropping, has secured funding from the Angel Breakfast Club
  • TouchOfModern, the online source for high-quality, innovative design products from around the world, has raised $3M Series A funding
  • Instacart, which offers grocery delivery services from multiple local stores within an hour, has raised $8.5M Series A funding
  • MarkITx, the premier online marketplace for buyers, sellers and wholesalers of secondary IT equipment, secures $2.15M seed funding
  • TrustRadius, an online platform for user-generated reviews of business software, has raised $5 million Series A funding
  • Codeanywhere, an online code editor pitched as ‘a Google Docs equivalent for developers’, has raised a $600,000 Series A investment
  • Privy, a customer acquisition and retention solution for multi-unit local businesses, lands $1.7M seed funding
  • Opbeat, a collaborative web operations platform you can set up in minutes, has raised a $2.7M Series A round led by Balderton Capital
  • Parenting information and e-commerce firm wauwaa.com, has closed €220,000 seed funding from angel investors
  • Mark43, whose software lets police officers spend less time doing paper work and more time in the field, has raised $1.95M seed funding
  • TalentBin, the “talent search engine” that turbo-charges talent discovery across the web, has announced $2 million Series A funding
  • Waygo, an app that instantly translates Chinese characters into English by hovering a smartphone camera over it, gets $900K seed funding
  • Soma, a charitable water filter maker, has closed $3.7M4 seed funding led by Baseline Ventures and Forerunner Ventures
  • EyeEm, a community and marketplace for high quality mobile photography, has raised $6 million in ventrue capital funding
  • Proven, the leading on-the-go employment app, has announced the closing of $1 million in additional funding

To get regular updates, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

 

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News:

  • Global venture capital financing hit $US10.4 billion in the second quarter of 2013: https://ow.ly/mKhZI
  • Mena investments up $200m in 2012 according to the Mena Private Equity Association’s annual report: https://ow.ly/mKkxi Infographic – €5.1 billion market shows European angels on the rise! https://ow.ly/mKCln
  • China’s venture capital market warms: https://ow.ly/mMHf2
  • ‘Super Angels’ in UK having growing influence in investment market: https://ow.ly/mSMzB
  • US Venture Capital Investment Amounts Doubled In Q2. Bay Area Companies Raised More Than NY, LA & Boston Combined: https://ow.ly/mTEDO
  • Renaissance Venture Capital Attracted Nearly $300 Million In 20 Michigan Companies: https://ow.ly/mTCNp

Business Plans & Pitching:

Fund Raising:

Marketing & Social Media:

Start-Up & Entrepreneurship:

To stay updated, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

Infographic – What the SEC Announcement Means for Startups and Entrepreneurs

July 10th 2013 the SEC announced that the ban on general solicitation has been removed for small businesses seeking startup capital, allowing for sweeping changes in the way businesses find funding. With general solicitation now permitted, startups have the opportunity raise money from a wider range of investors – potentially accelerating their funding.  The infographic below details the changes to come with yesterday’s announcement and explores the ways it will affect entrepreneurs as they seek funding.

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world:

  • oneflare, an online marketplace for home and local services, has received $500,000 funding from angel investors in Sydney
  • Knimbus, an online community for researchers, has raised more than Rs.3 crore funding from a group of angel investors
  • Tweekaboo, a technology platform for recording and sharing family moments, has raised US$800,000 seed funding
  • Phynd Technology, a Provider Management Platform for healthcare institutions and providers, has raised $2M seed funding
  • Klip.in, a social shopping discovery and curation platform, has raised funding from VentureNursery, an angel-backed startup accelerator
  • BlikBook, a social learning platform aimed at the higher education market, lands $1.3M funding led by Leaf Investments
  • Video platform developer Carambola has completed a $1 million seed round of funding led by venture capital fund Rutledge Vine Capital
  • Seculert, the cloud-based advanced threat protection company, closes $10 million Series B funding
  • Flat.to, a Mumbai-based real estate listings site targeted at students looking for rental accommodation, has raised angel funding
  • Hulafrog, a network of hyperlocal web guides for suburban parents, secures $500K seed financing led by Innovation Garden
  • Rallyhood, a social productivity platform for your group to communicate, coordinate and share, completes $3.2M Series A financing
  • Gram Vaani, a social tech company based at IIT-Delhi, has raised $500,000 from undisclosed investors to expand the team
  • Adore Me, an online lingerie retailer that sends members a matching pair of bras and panties each month, lands $8.5M Series B funding
  • IndusDiva.com, an e-commerce portal for Indian ethnic wear for women and kids, has raised a round of angel funding
  • Riskified, which makes it easier for online merchants to accept high risk credit card transaction, closes $1.65M seed funding
  • The IdeaLists, a startup which operates an online marketplace for creative talent, has raised $1.7M seed funding
  • Sensipass, a digital security start-up that vows to make passwords history, has won a €50,000 investment
  • Giftxoxo, a gifting platform which enables personal and corporate gifting, has received angel investment from Kshatriya Ventures
  • Jukedocs, a cloud-based content management provider, has received an angel investment of $500,000
  • Japanese e-ticketing startup Peatix just closed a Series A round of $3 million, led by Fidelity Japan
  • Life360, an app that uses location-based technology to let family members communicate with each other, raises $10M Series B funding

To get regular updates, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

 

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News:

Business Plans & Pitching:

Fund Raising:

Marketing & Social Media:

Start-Up & Entrepreneurship:

To stay updated, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.

Angel Investment Network’s Weekly Funding Roundup

Here’s a roundup of some of the recent seed-stage and angel deals from around the world:

  • Combat Gent, a fine menswear etailer that equips men with everything they need to get the job done, has closed $1.84M seed funding
  • NuMedii, the startup looking to convert pages of drug safety data into faster drug-development times, grabs $3.5M Series A funding
  • Ludei, a development platform that helps developers to deliver and monetize HTML5 apps, has received $1.5 million funding
  • Lifecom, a market leader in clinical decision support solutions, has completed a Series A Financing round of over $1 million
  • Inadco, a leader in native digital advertising, has raised an $11 million Series B round led by U.S. Venture Partners
  • Playblazer, which offers a cloud-based SaaS platform for social and multi-player game developers and studios, has secured angel funding
  • PokitDok, a price transparent health and wellness marketplace where consumers shop directly from providers, raised $4MJ Series A funding
  • WhatsNexx, a leading edge provider of cross-channel marketing automation software, lands $2.33M venture capital financing
  • Chupamobile, the leading marketplace for buying and selling App Source Code, has raised new funding from US & European angel investors
  • my6sense, which provides mobile content discovery solutions for consumers, has raised $2 million angel funding
  • Taiwan-based web and mobile game publisher Pubgame has raised a Series A round led by The CID Group and appWorks Ventures
  • Outbox, which digitizes your postal mail then puts it online for access via web, iPhone, Android or iPad, raises $5M Series A funding
  • Ad tech startup Yieldbot, which helps connect publishers and advertisers to better target their display ads, attracts $5M Series A funding
  • rollApp, whose platform enables Windows and Linux apps to run on any device with a web browser, gets $1M Series A funding
  • Cubresa, a medical imaging company building the world’s only hand-held, MR-safe gamma camera, has closed $500,000 angel funding
  • Karnataka-based mobile app developer Robosoft Technologies has secured its first institutional round of funding from Kalaari Capital
  • Pixate, whose mission is to reduce the complexity of creating apps, has closed $3.8M Series A funding from Accel Partners
  • FIGS, a startup offering up fashionable medical scrubs, has raised $2M seed funding
  • Mingyian, a platform that connects Western celebrities to their fans in China, has raised $500,000 seed funding
  • SigFig, a web platform for tracking and analyzing your personal financial investments, has secured $15 million Series B funding
  • Artsly, a video platform providing short lessons in makeup, music, photography, food, painting & crafts, lands $175,000 from Kima Ventures
  • Cashback and coupon website Cashkaro has raised $750,000 seed funding from a group of UK based angel investors
  • ClusterFlunk, a virtual meeting place for college students to collaborate on assignments & prepare for exams, closes $100,000 seed funding
  • Snyppit, an app that allows you to share video moments of your life with friends and family, gets $521,000 seed funding
  • CL3VER, the first professional HTML5 web platform to create engaging 3D for web & mobile (without plugins), lands $800,000 seed funding
  • Engrade, an edtech startup that integrates people, tools, data & curriculum on one user-friendly platform, raises $5M Series B funding
  • Quartzy, an online suite of lab management tools for the academic life science community, has closed $4 million Series A financing

To get regular updates, come follow us on Twitter: https://twitter.com/angel__network or register for our blog at https://www.angelinvestmentnetwork.netwp-login.php?action=register.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Or are you looking to raise funding?  Send me a summary of your project at mike@angelinvestmentnetwork.co.uk and we’ll try to help.