Jasz
VIP Contributor
Financing a new business is no easy task. Angel investors often provide capital for minority ownership in a company, usually in exchange for a percentage of the profit. Many entrepreneurs seek out angel investors for startup funding and, if you do so successfully, you'll have to negotiate and sign a contract with them.
To approach an angel investor, you need to be prepared to make a great pitch. This includes a well-researched business plan, a clear understanding of your market and a clear explanation of how you will use their investment. Understand that while they can provide income during the start-up phase of your business, they will want a say in how your business is run and structured. They also will likely want a return on their investment within 5 years.
I have come across a lot of people who think that the magic happens after you find an angel investor – that your journey is over and all you have to do is hope for the money to start coming in. I’m here to tell you that asking for angel investment is a full-time job, and as with anything else, there are strategies that will help you succeed and others that will shoot yourself in the foot before you even get off the ground. So, let’s talk about some of the things NOT to do when seeking out angel investors?
To approach an angel investor, you need to be prepared to make a great pitch. This includes a well-researched business plan, a clear understanding of your market and a clear explanation of how you will use their investment. Understand that while they can provide income during the start-up phase of your business, they will want a say in how your business is run and structured. They also will likely want a return on their investment within 5 years.
I have come across a lot of people who think that the magic happens after you find an angel investor – that your journey is over and all you have to do is hope for the money to start coming in. I’m here to tell you that asking for angel investment is a full-time job, and as with anything else, there are strategies that will help you succeed and others that will shoot yourself in the foot before you even get off the ground. So, let’s talk about some of the things NOT to do when seeking out angel investors?
