Whether you are an early-stage start-up looking to get your project off the ground, or an established SME looking at diversification, Angel funding is always an option to consider, especially in this day and age of shy banks and Venture Capital. Here are some tips on how to nail an Angel Investment meeting:
1/ Before the investor meeting
Before the meeting, research the investor or the investment firm thoroughly. Look for information such as the types of companies they invest in, their investment philosophy, and their past investment decisions. This will help you tailor your pitch to align with the investor’s interests and preferences.
Rehearse & anticipate questions:
Rehearse your pitch several times, so you can present it with confidence. Anticipate the questions the investor may ask and have concrete examples and data to support your claims. This will demonstrate that you’ve thought through the details and are serious about your business.
Make sure your pitch is clear:
Your business needs to be easy to understand. Investors are often evaluating multiple opportunities, so you want to make sure your idea stands out. Use simple language, avoid industry jargon, and be sure to explain the problem your business solves and the value it provides.
Make sure the deck highlights your credibility:
Investors want to know that you have a strong team in place, a well-thought-out plan for executing the business, and the ability to bring your vision to life. Show them that you have the experience and expertise to succeed, and that you have a team of advisors and mentors who can support you along the way.
Highlight the problem(s) you’re solving:
In your presentation, explain how your solution solves a real problem and addresses a good market opportunity. Be specific about the problem, the market size, and how your solution is unique. Demonstrate how your solution will benefit the customer and how it will create value for the investor.
Polish your financials:
Investors want to see that you have a solid understanding of the financials for your business. Have clear and realistic financial projections, including revenue, expenses, and cash flow. Be prepared to answer questions about your financials and show how you will generate a return on investment for the investor.
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2/ During the investor meeting
Try to understand the psychology of the investor
Understanding the psychology of an angel investor can help you better communicate with them and increase the likelihood of securing their investment. Here are some common psychological factors that drive angel investment decisions:
- Assess their risk tolerance: Angel investors are typically comfortable with higher levels of risk compared to traditional investors, as they invest in early-stage companies with higher potential for returns, but also higher uncertainty. Understanding their risk tolerance can help you better communicate the risks and rewards associated with your business.
- Understand their personal values: Angel investors often have personal values and interests that influence their investment decisions. For example, they may be interested in investing in businesses that align with their environmental or social values. Understanding the investor’s values and interests can help you tailor your pitch and build a stronger connection with them.
- Assess their expertise: Angel investors often bring valuable expertise and connections to the table, in addition to funding. They may have industry knowledge, business experience, and connections that can help your business succeed. Showing that you value their expertise and are open to their input can help build a strong partnership with the investor.
Play on the Fear of Missing Out (FOMO)
Angel investors don’t want to miss out on the next big thing, and they are often competing with other investors to make the best investment decisions. Highlighting the uniqueness and potential of your business, and the investment opportunities it provides, can help alleviate their FOMO.
Investors are looking for entrepreneurs who are passionate about their businesses. Show your enthusiasm for your idea and let your passion shine through. This will help you connect with the investor and build a relationship with them.
Ask for feedback
Be open to feedback from the investor and be willing to consider and respond to their concerns. Investors appreciate entrepreneurs who are open-minded and willing to improve their business plans based on their feedback.
Set up a follow-up meeting before ending the call!
This is actually a very important part of your meeting: setting up the follow-up call. Unless the investor clearly said they are not interested, do not let them leave the call or room without a follow-up meeting on their agenda. Don’t be shy, be pushy if you need to.
In summary, be well-prepared, passionate, and professional. Show that you have a clear understanding of your business and that you have a well-thought-out plan for executing it. Build a relationship with the investor and show them that you are committed to making your business a success.