Dos and donts when asking an angel for funding
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This document provides tips for entrepreneurs pitching to angel investors. It lists "don'ts" such as sending unsolicited emails without introductions, using complicated presentations, or claiming unrealistic competitive advantages. The tips recommend entrepreneurs do their research on the types of companies investors support, find champions within the group, practice their pitch, address questions directly and have a clear financial slide. The overall message is to be prepared, avoid exaggerations and respect the investors' time and preferences.
Dos and donts when asking an angel for funding
- 1. Top Do’s and Don’ts When Asking an Angel for Funding From the Investors’ Perspective 1. Don’t send in a plan by email unsolicited without an introduction and expect success 2. Don’t ask a group to sign an NDA 3. Don’t use more than a handful or words on a slide and do not use any small size fonts 4. Don’t use elaborate builds on your slides 5. Don’t plan a complicated demo or video as part of your pitch 6. Don’t run over your allocated presentation time 7. Don’t be flip or glib in your presentation 8. Don’t forget your manners 9. Do not tell the angel group that “you are not a business person” … own your numbers 10. Don’t mumble, whisper or equivocate 11. Don’t claim you will rely on first-‐mover advantage and have no competitors 12. Don’t think that “social media” is an adequate go to market strategy or assert that you will grow by “going viral” 13. Don’t list Google as a potential exit, unless they are actually a realistic potential exit and you can explain why Originally published on ScratchPaperBlog.com and edited for
- 2. Top Do’s and Don’ts When Asking an Angel for Funding From the Investors’ Perspective 1. Do your homework and find out what companies a group likes to invest in (check out their website, or talk to some of their members) 2. Do find a deal champion within a group by networking 3. Do pay attention to the presentation guidelines given to you by the angel group that you are presenting to 4. Do practice your pitch multiple times 5. If you are guessing, say so and explain the basis for your guess Best to explain (briefly) how you will find out 6. Do tell why the market is interested … provides a sales or “interest” pipeline if possible 7. Do prepare a list of FAQs and be ready with short answers 8. Do listen to the questions carefully... Don’t underestimate the audience 9. Do make sure that you have a financial slide in your presentation and do not leave it until the last minute and then hurry through it This is one to check out with the coach or champion ahead of time 10. Do feel free to ask questions about how an angel group works, the profile of the membership and what to expect 11. Do structure meetings based on what they are actually for Originally published on ScratchPaperBlog.com and edited for