All startups will eventually need to seek outside capital at some point in their startup journey. Partnering with angel investors can be a great way to get the funds you need to grow your business. To secure capital, you need to find an angel investor who can see potential in your startup by persuasively presenting your idea.
Setting up meetings and pitching your dream to angel investors is intimidating, no matter how you put it. You've put a lot of work into building your startup, and you're ready for the next phase. You just need the funds and some resources.
Once you secure that first meeting with an angel investor, you only have a short period of time where you can pitch your idea and impress potential angel investors to compel them to invest in your startup. This practical checklist will help you to understand how to best pitch to angel investors to secure the funding you need quickly.
Angel investors are individuals who come from the business world and are often small business owners themselves, professionals, company executives, and more. They have a high net worth and the money to invest and are always looking for a new opportunity to make a significant return. Angel investors offer promising startup funding, especially in the early stages of development, in exchange for equity in the company.
When you're ready to bring angel investors to your startup, you have to find them first. If you're not already connected, you need to know where to start. There are a lot of platforms available that make finding angel investors seamless. Here are a few places you can start.
Pitching to angel investors can be tricky. Your business may not be fully established or have a strong customer base just yet. But pitching involves selling your startup through numbers, passion, and drive. You want to build a pitch deck that highlights who you are, the details of your startup, and what you intend to accomplish, all within a short timeframe. Here's everything you need to know to pitch to angel investors and secure that funding.
Research Your Angel Investors BEFORE You Meet – You don't want to spend time preparing for a meeting with angel investors who don't understand your industry. Research angel investors long before you meet and understand their backgrounds.
Learn about their accomplishments, any startups they've invested in previously, and their background. The more information you can gather, the more you can understand what excites them about investing in startups.
Be Passionate and Authentic in Your Purpose– Be passionate and authentic when you meet with angel investors. They understand you don't have all the answers during the early stages. They want to hear your story, but they also want to hear a realistic vision.
Tell a Compelling Story – In the early stages of your startup, you're still building your business. You want to really drive home a great narrative and humanize your business by telling a compelling story. Be able to highlight why you started your business, who it can help or the problem you can solve, and your hopes for the future of the business in a compelling way. Investors are fueled by instinct, and if you can engage with angel investors through a powerful pitch, you can inspire investors to share your vision and want to help you achieve your goals.
Keep Your Pitch Straightforward – You have a designated time slot to present your startup to angel investors and going over is not an option. Your investor presentation and pitch should be short, concise, and get straight to the point but with passion while still painting a compelling picture. Sticking to your time slot can also be a great way to show you respect for the angel investors' time.
Introduce Your Team – In the early stages of your startup, you likely have a few key team members working with you to build, plan, and execute the many working parts of your business. Angel investors will be interested in your company's success and want to know the team behind it. You will want to introduce them and help them understand each key player and their role in building your startup.
Include Rich and Concise Data – Passion and drive will only get you so far. Angel investors are looking to invest in return for a profit. Even in the early stages, you want to show realistically what your startup is capable of achieving. You need to convince them that your business can grow and scale significantly. Present them with figures, numbers, and potential profit margins.
Personalize Your Pitch for Your Audience – Every angel investor you meet has a different agenda, criteria, background, and values when it comes to building a business. This is where your research on your angel investors can come in handy. You don't want to create a pitch deck intended for every investor.
You want to consider who you are getting up in front of with every presentation. What are they looking for in an investment opportunity? Who have they invested in before? Are there any attributes they prefer in a business partner? You can use what you find to update and customize your pitch to better fit each angel investor's preferences. That way, you can improve your odds your pitch will resonate with more investors giving you a real chance to secure funding.
Be Prepared to Answer Questions – Angel investors like to see that you are prepared to answer in-depth questions. It will show your preparedness and ability to come up with quick answers to potential problems on the spot, showing you are an effective problem solver.
Practice Often and Improve Your Public Speaking Skills – Public speaking is not everyone's strong suit and being prepared can make a great impression. Practice your investor presentation with your friends, family, and peers to get it down to a science. Beyond memorizing your presentation, you want to prepare and improve your public speaking skills as a whole.
When you're a founder, you're a leader. You'll need to speak to many important people, including investors, your employees, and customers. You want to deliver your messages with confidence. Improving your public speaking skills is the ability to focus on commanding a room and grabbing attention using the tone of your voice, your body language, visual aids, and more. Improving your public speaking will allow you to confidently deliver your pitch and help you prepare for the unexpected, such as detailed questions or initial concerns.
Meet With the Intention of Building Relationships – Meeting with potential investors should be seen as more than an opportunity to close a deal and secure funding. You will be working with these angel investors often, and you want to view this as a chance to cultivate a good relationship and establish a strong rapport. If they choose not to invest in you this round, they can offer connections and even invest in your startup during later rounds.
Learn From Your Mistakes – Not every pitch is going to go well, and there will be some that you will outright bomb. Think about questions you weren't prepared to answer. Maybe they misunderstood or didn't quite see the value based on your presentation. Most important is that you learn from your mistakes and work to improve your flaws to ensure the next one is better.
You'll have to pitch to many investors to get the capital you need to build your business. Polish that pitch deck, ask for feedback, and be authentic. You can help ensure your success by following this practical checklist to get you ready to knock your pitch out of the park.
When you're ready to start on your journey to find the perfect investor, it can be overwhelming. Get the help you deserve to get your startup off the ground. Angel Match can match you with over 90,000 angel investors and venture capitalists in one place. Learn more about how Angel Match works here.