Angel investors can be professional investors such as lawyers, former business partners, doctors, or even experienced entrepreneurs wishing to help the next generation. What matters is that they are rich and willing to invest hundreds of thousands of dollars in their business in return for a share. Angel investments are ideal for companies that are sufficiently established to go beyond start-up, but who are still at the beginning of the game need capital to develop a product or finance a marketing strategy.
Types of Angel Investors
Angel investors may be individuals or groups made up through crowdfunding and investors pools. Because they invest their own money, factors such as trust, reliability, and delivery play a more important role than relations with capitalists.
Meeting Angel Investors
Industry-focused events are a great way to meet angel investors. You can now use technology to help you find angel investors. Angel investors are more available than ever.
Unlike venture capital events, often organised in or around major cities, investor events are organised across the country. With a little planning, you will have the opportunity to present your ideas to hundreds of angel investors looking for promising entrepreneurs.
The angel investors stay anonymous for the most part. However, since the dawn of technology, as we know it, you can now find online platforms that help you communicate online with angel investors. You can then hold meetings where you can share your idea with potential investors in your area.
Angel Investment Groups and Networks
You can also contact an angel investor, an investor network or a group of angel investors directly to suggest their idea. Angel investors often filter ideas before they are viewed, and unless you have an advocate with a network or an individual, your contact request may be lost in thousands received every day.
If you do not trust your fundraising skills, you can always call on fundraising advisers to get you started. Like investors, fundraising consultants do not engage clients with the potential to sell to investors. So make sure you give them an excellent presentation.
Things to Consider Before Building a Relationship with Angel Investors
Angels expect a lower rate of return on their investments than the venture capitalists, but the initial informal nature of the relationship requires good scaffolding before continuing. If you are looking for an angel investor, here are some things to consider before building a relationship.
Determine the desired rate of return for the invested angel capital, this must be a realistic target agreed upon by both owners and the company.
On average, angels choose 30% of the required investment. Some of the common reasons for rejection include lack of growth potential, lack of management vision, lack of key personnel in key positions, and equity in assets.
The target company should have a securities council and advisory committee that maintain direct contact with management to formulate a comprehensive angel investor action plan prior to its review.
It is essential that the angel investors seek owners for a board position or an advisory role, maintaining a high degree of communication with the company in which they are invested. Moreover, to schedule monthly or weekly meetings with them is very important for the business. It also helps to establish a positive relationship between you and society.
As the company grows, shrinks or benefits from the fluctuations of the market, you will certainly need another round of financing. When this happens, it must be indicated as an angel investor who retains its seat on the board of directors or retains ownership regardless of growth.
While this is not a complete guide at all, you need is to have a better understanding of what to consider before diving into this type of investment.
Tips to Pitch Angel Investors
Once you are qualified for your first meeting with an angel investor, you must prepare a presentation to present your idea. Angel investors notice some key aspects of your letter. So be sure to lay the foundation for a great delivery.
Research the process
Every individual or group of angel investors follows a unique process for choosing startup. Get to know this process as much as possible. Take notes and use the information to provide basic information at the critical points of the process.
Investors will want to contact you and ask questions even before meeting if they want your idea to be launched. Giving them open channels of communication can improve their relationships, which can be a crucial factor.
Find a vocal hero
Before arriving at the meeting, you must get an investor or group of investors. You should try to assign a vocal hero within the group or near the individual.
Make an unforgettable presentation
The most important and important element of pitch is a solid presentation. An amazing presentation has many elements, but knowledge and confidence are always at the top. In addition, you should always remember:
Tell a captivating story
Get to the point
Prepare a good business plan. The good business plan must include industry partners, a summary of the company, market environment, business metrics, and long term marketing plan, design, and development plan, financial plan and company proposal.
Be prepared to answer the questions
Wear the orator cap
Having a meeting with potential angel investors and dealing with them can be very stressful, but by using the tips, you can raise your startup level to the next level in no time and get the funding for the app you deserve.
For more funding information check out our article 3 Stages of Successfully Pitching to Investors.
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