What do angel investors need to know before investing?
What do angel investors need to know before investing? Investors will absolutely want to know how their capital will be invested and your proposed burn rate (so that they can understand when you may need the next round of financing). It will also allow the investors to test whether your fundraising plans are reasonable given the capital requirements you will have.
How do I present an angel investor?
- Start with passion and drive.
- Be clear about the purpose behind the business.
- Focus on the business opportunity.
- Get the facts and figures in order.
- Personalise your pitch for your audience.
What should angel investors look for? Some reports suggest that angel investors should look for ROIs of 30-40%. Part of convincing an investor that your business has significant money-making potential is by having a detailed business plan.
What does an angel investor want to hear? Above all, angel investors are looking for a high rate of return on their initial investment. They’ll want to know if the business idea fills a gap in the market with potential for significant growth. The product or service should be new and exciting – so you’ll need a heavy-hitting, detailed pitch to sell it.