50 Quick Tips on Raising Angel Funding – Part 1

  1. Remember to tailor your business plan. The plan you pitch to an angel should be different from the one you use to pitch to a bank.
  2. Figure out the least you need to get to the next stage and raise that amount. Then you’ll have to give away less equity.
  3. Always ask for feedback after pitching your company. You can learn from each investor that says no, and improve for the next time.
  4. Try to invest some of your own money in the business. Angel investors like to see financial commitment from the management team.
  5. Have business plans and pitches of various lengths (e.g. 50 words, 200 words, 500 words, 1,000 words, 2,000 words and the full plan).
  6. Make sure you can explain exactly what your business does in under 30 seconds.
  7. Remember that investors will want high returns, due to the high risk nature of angel investing.  Of every 12 companies they invest in 1 might be huge, 2 might be good, 3-4 will be marginal, and the rest will fail.
  8. Never tell an angel “the product will sell itself”. It won’t! An investor wants to see a clear USP & well thought-out sales strategy.
  9. Be enthusiastic – Investors expect energy and dedication from entrepreneurs.
  10. Angels like to invest in deals with other Angels who have done this before and learn from them to get started
  11. Make the most of social media – it’s free and a great way to get yourself known in your sector.
  12. When pitching for funding, don’t get bogged down in technical details, or you’ll lose the investor’s interest.
  13. The management team is one of the most important factors for angels.  Consider what skills you and your existing team have and what needs to be brought in.
  14. Angels look to invest in strong markets.  You can fix a lot of things about a business, but you can’t fix a bad market.
  15. Keep your pitch short and sweet, so the investors stay interested and are keen to find out more.
  16. When you read your business plan, put yourself in the investors’ shoes. Ask yourself: ‘Would I invest in this business?’
  17. Make sure your business plan isn’t too technical and that anyone can understand it.
  18. Don’t be afraid to ask the investors questions about their background.  They should be keen to impress you and willing to answer any questions you might have.
  19. To reassure investors, get someone in your team who has successful experience with start-ups and exits.
  20. If possible, approach investors with a working prototype. Investors like to see, touch and test what they’re investing in.
  21. Use facts and stats rather than personal opinions.  “I think this market will grow” isn’t as powerful as “This market has grown 30% annually for the last 3 years”.
  22. Positive feedback, customer lists, presales and letters of intent are very useful when trying to convince investors.
  23. Join an association in the field in which your business operates. This will give you great networking opportunities.
  24. Decide exactly what you want from your angel: money, contacts, industry experience, entrepreneurial experience, etc.
  25. Investors will expect you to have a very good understanding of your competitors.

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News 

  • Google has thrown its considerable weight against a new project aimed to give a helping hand to aspiring UK businesses: https://bit.ly/hrNI6G
  • There’s a new iPhone app, Angel Trivia Daily, which tests your angel investing knowledge with a new question every day: https://bit.ly/h6qIZs
  • The UK Government has detailed plans to help small businesses start up and grow in the UK: https://bit.ly/i5DHcR
  • New 2 million Euro technology investment syndicate established by angel investors in Ireland: https://bit.ly/eWuPbh
  • Connecticut tax credit tweak finds angel wings: https://bit.ly/ic3KU8
  • Availability of seed funding for Irish companies at highest level in 30 years: https://bit.ly/ejQdzr

Business Plans & Pitching

  • How one Group of Startups and Investors Traded the Elevator Pitch for the Ski Lift: https://bit.ly/ij38As
  • The power of the pitch: Advice from the receiving end: https://bit.ly/fkDhPr
  • Four Easy Steps to Credible Startup Financials: https://bit.ly/evzCrL
  • Investor Presentation Basics – how to avoid a Trainwreck Elevator Pitch: https://bit.ly/fwFe8z

Fund Raising

  • Raising capital from business angels and private investors isn’t as easy as some people think. Here are some tips: https://bit.ly/gWCMU4
  • An introduction to Angel Investors and how to find them: https://bit.ly/hmOOyp
  • There are plenty of options for getting money to start your business. The trick is finding the solution that suits you: https://bit.ly/igw0g
  • Ever heard of Apple, Amazon.com, Facebook, Google & Twitter? They all got early funding from angel investors. https://bit.ly/e6DhnH
  • How to Find the Right Investor for Your Business: https://bit.ly/eNk6vz
  • Obtaining Funding from Business Angels and Private Investors: https://bit.ly/hv9Eez
  • The 6 Biggest Mistakes in Raising Startup Capital. Avoid these traps to increase your chances of securing funding: https://bit.ly/fBfBiK

Marketing & Social Media

  • Most FTSE 100 companies ‘fail’ at social media and risk being overtaken digitally by smaller and more agile firms: https://bit.ly/foVy8A
  • Five Tips for Marketing Your Startup Business on a Shoestring: https://bit.ly/fy3shM
  • 10 Social Media Tips For the Startup: https://bit.ly/eZfHyD
  • Top 10 Ways to Build Your Subscriber List: https://bit.ly/e5NVro
  • 5 Great New Social Media Strategies (other than Facebook, Linkedin and Twitter): https://huff.to/eo9mBY
  • How to Build a Winning Brand for your Startup: https://bit.ly/gOb1mH
  • 5 Simple Steps to Social Media Start Up Success: https://bit.ly/g1ktcu
  • How to Harness the Power of Social Media Feedback: https://bit.ly/ic7SXD
  • Facebook vs. Twitter: Which is Better for Marketing? https://yhoo.it/ijbzCO

Start-Up & Entrepreneurship

  • 6 ways to make your Small Startup Business look Bigger: https://bit.ly/e8ibt9
  • 5 Common Startup Money Mistakes: https://bit.ly/fQaMgl
  • Ex-Googlers Penetrating Startup Hierarchy. There is a Xoogler now at pretty much every top-tier VC: https://bit.ly/eMimLu
  • Ten Entrepreneurship Rules for Building Massive Companies from Linkedin co-founder Reid Hoffman: https://bit.ly/eB3QAH
  • 5 awesome Small Business Tools you can use to grow your business faster: https://bit.ly/hrWHCK
  • 7 Tips On Outsourcing for Early Stage Startups: https://bit.ly/i6erae
  • § Secrets of Entrepreneurial Superstars: https://bit.ly/e7r0mn