How to pitch to angel investors
There are two ways you can pitch your business to angel investors: offline or on
Traditionally, when pitching offline the entrepreneur would meet either with individual investors or angel networks. However, as the sector evolves, entrepreneurs can now use online equity crowdfunding platforms to raise capital.
Whether you choose to pitch to investors online or off, it's useful to know what they're waiting or expecting to hear. There isn't a lot of difference between delivering a business pitch out there in cyber space or face-to-face. In fact, the same pitch can be adapted very easily and used in either situation.
Whichever way you ask the angels to invest in your business, you need to make sure you've included everything in your pitch. Or are you missing some vital element which could be the tipping point in their decision?
We've gathered a list of tips, articles, and advice on exactly what angel investors are looking for and how to make sure you deliver the pitch they've been waiting for.
#1 "5 tips to successfully pitch new ideas to angel investors": David Gammon
These tips are aimed at young entrepreneurs (18-25) who are seeking investment and pitching to investors for the first time. It covers everything from recognising that it's not just financial support you are pitching for, to the need of preparing properly and not overloading the presentation.
#2 "The Fine Art of Meeting With an Angel Investor": Asheesh Advani
This post opens with a reminder that "Angel [investors] don't descend from heaven" and that delivering your business pitch is a fine art. But what actually goes into perfecting this art? Outlining coherent and specific goals for yourself plays a large role; knowing what you want to achieve can help you focus on how to achieve it.
#3 "Pitching to angel investors": Carmine Gallo
Use your pitch to tell a story. Introduce the problem in the marketplace and the solution your business, service, or product provides as the villain and hero. Share the stage with your team and take investors through the story of your journey so far. They want to see the passion you have for what you do, so show them!
#4 "How to present a business plan to investors": Prajakt Raut
A handy slide deck which goes through a list of things to consider when preparing to present your business plan to potential investors:
what investors are looking for,
what you should include in your presentation,
what ROI angels expect to see.
#5: "How to pitch to an angel by an angel": Sara Davies
As a member of Gabriel Investors, Sara Davies knows exactly what she's looking for when it comes to business pitches. Here, she tells budding entrepreneurs to include only the key points: what the business does, what investment is required, and where they want the business to go. She goes on to say that if the entrepreneur speaks with confidence, they will have a greater chance of attracting investment from angels.
#6: "10 questions I didn't expect to be asked by investors": Caroline Cummings
Every once in a while you might be thrown a curveball and asked a different sort of question to the expected "What is the revenue potential for the industry?" or "What are the probable exit scenarios?". Here serial entrepreneur, Caroline Cummings, shares 10 of the more unexpected questions she's been asked when pitching to investors.
Although the majority of tips we've linked to in this post offer advice on pitching offline, the process can be replicated quite easily online.
So now you know what the angels want to hear from a great business pitch, creating and delivering one which will have a better chance of attracting both interest and investment, should be a lot easier.
If you choose to raise capital via the GrowthFunders platform, it will be highly likely that you will have the opportunity to pitch to angels face-to-face, as well as through your campaign page. So make sure you're well prepared and have everything in place to be able to excite potential investors.
If you haven't already, check out our blog series, "How to Create a Killer Equity Crowdfunding Pitch" which could really help you.