Interview of Diane Tea on five key aspects to a Business Angel. You can find the full article on the House of Entrepreneurship website.
Or an extract here: When pitching to business angels, startup founders need to pay attention to a number of different things. Let’s discuss these and hopefully help you separate myth from reality.
Many angel investors will choose to invest in sectors that are close to their interests, and they will be more willing to give those startups a chance whose products or brand stories speak to their hearts. Indeed, touching the hearts of potential investors will help you pique their interest and make them want to know more about your startup and business, but remember that this is only the first hurdle that needs to be surmounted.
Equally as important: angel investors want to see passionate founders with skin in the game. They want to see that you have fully embarked on your venture and that you are invested not just financially, but with your hands, your mind and your spirit.
1. The vision
2. The traction
3. The growth potential
4. The financials
5. The team
All of the above will form a part of the second stage of the pitch. If you get it right, it will then be taken through to the next phase, which is the stage of due diligence. I strongly advise any of the startups that I mentor to be prepared for this and to offer any background information that can support their business proposition. This includes a detailed outline of the competition, product, pricing, business and financial models, leadership background, regulatory and legal aspects as well as other transactions. Having an engaging pitch is not enough to get a deal over the line; the due diligence stage is the most critical part of all, and it is the stage in which many deals get dropped. But as least this article gives you a head start!