The laws of attraction: how angel investors see your pitch deck
As the end of the tax year approaches, many founders are vying for angel investors’ attention, hoping they could be the chosen ‘one’ for them.
If that describes you, we’ve laid out a few ways to catch investors’ eye.
Before approaching investors, however, it’s important to make sure you’re presenting a viable opportunity that’s ready for investment, and that you’re targeting the right people.
If you’re confident about the opportunity you’re putting forward, it’s time to start contacting investors.
In business, like in love, it’s all about compatibility. Most angel investors will focus on niches they’re familiar with, so doing your research is key.
1. Find the right investors
Once you’ve crafted your story and put together a pitch deck that would make investors ‘swipe right’ on your proposal, it’s important that you identify the right target audience.
Is your company in the biotech or medtech space? Does it deal with e-commerce? Whatever your niche, do thorough research before sending out that first email to investors. Get to know what they’re interested in and appeal to their expertise.
Angel network platforms, like the Envestors Private Investment Club, can make your life easier by giving your access to thousands of investors focusing on several niches.
Once identifying the right investors, make your first interaction count by providing a short list of metrics, a bit about your background and a teaser pitch deck. Describe what your company does in a short elevator pitch and don’t forget to mention the value it brings to users.
2. Problem / Solution
Sending the first email may be behind you, but the work to get investors to support your vision has just begun. Use your first meeting to outline the problem you’re solving and go over how your solution is better than any other on the market.
Focus on succinctly describing how the problem you’re tackling is solved right now, and what you’re bringing to the table.
3. Management team
People invest in people, and having a great product is not enough. Like you would on your first date, it’s important to sell your team’s potential and accomplishments. Go over your management team’s track record and focus on their sector-specific expertise.
4. Market size and go-to-market
Once you’ve established you can do it, zero in on why it’s worth doing at all and how you plan on growing your business.
Be prepared by thoroughly researching the potential market and be ready to answer difficult questions about your go-to-market plan. Know everything there is to know about your customer and the best ways to get their attention.
You’re not just building a business.
You’re presenting investors with a unique opportunity for significant returns. In order for them to see your potential, back up your pitch with cash flow details and financial projections. Look at your revenue model – how you plan to make money, who your clients are and how well your pipeline is looking.
A well put together sales and cash flow forecast will not only show investors your opportunity is viable, but it will also reveal if you’re looking at the business in a realistic manner.
6. Investment offer and valuation
You’re showing traction, your pipeline is looking good, and your financial projections are a dream. Once revealing a realistic valuation that stands up to scrutiny, it’s time to seal the deal and ask for investment.
Investors will want to know how much money you need and what you intend to use it for. Are you putting it back in further growing your product? Is the investment going towards marketing? How will this round impact your growth and how will it affect your projections?
Be ready with the answers before ‘popping the question.’
7. Let a network do the work for you
Contacting dozens of investors can be grueling. With an investment network, all you need to do is provide your information and let investors come to you.
The Envestors Private Investment Club allows you to fill out a profile, including team details, company description and valuation, and communicate with investors as they ask questions and request access to confidential financial data.
You can update investors on new developments with the company, always keeping your profile fresh and up to date.
With over 4000 investors signed up, our network can help you grow your chances to raise investment.