- EXPLAIN YOUR IDEA CLEARLY
Inability to describe the business idea early is the biggest mistake startups make while meeting an Angel Investor. So grab them by the hook early if you want to seal a deal.
- HIGHLIGHT THE PROBLEM & OFFER SOLUTIONS
The core idea in your business plan about solving problems is something that the Angels are really interested in.
- PICK LEAD INVESTOR
Choosing a lead investor affects business operations. The lead investor would act as a magnet for other investors and raise the necessary capital while you focus on your business.
- GET VALUATION RIGHT
Ask a few Angels about the realistic valuation of your idea more often than not this will help you arrive at a correct valuation and raise the required money.
- KEEP DUE DILIGENCE PACK READY
The moment an Angel is interested in your business, you can offer a due diligence pack. It shows your professionalism on the management side.
- SHOW YOUR FOCUS ON BUSINESS
An angel investor won’t invest on an entrepreneur who isn’t focused on running the business and is merely looking to raise capital. Also never ask for a high salary post investment.
- HAVE AN EXIT STRATEGY
The reason an Angel would invest in your business is to make money and this is why they would want to know about your exit strategy.
- BE HONEST
Never try to hide anything from an Angel that concerns your business or something that would concern in the near future.
- AVOID BEING CONSERVATIVE
Conservative behavior reflects on the growth of your business, as the investors are going to rework on the figures and come up with more realistics estimates about your business.