Getting Venture Capital and Angel Investor Funding

Securing angel investment or venture capital (VC) funding can be a game-changer for growing businesses. However, obtaining these forms of investment is often challenging due to their highly competitive nature.

So, how can you access these funding opportunities?

In this guide, we’ll cover how to prepare for outside investment and the intricacies of angel investment and venture capital. Let’s prepare you to connect with investors and get the funding you need to accelerate business growth.

Before seeking investors

Investment from angel investors or venture capitalists is rare for small businesses. If you believe you have a shot at this type of funding, consider the following:

Write a business plan for investors

You can fine-tune your business plan to resonate better with investors. Here’s what you should focus on to show your business is worth investing in.

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Be aware of what investors want to see

What does it take to attract interest from investors? Here are five things they’ll pay close attention to.

Calculate your initial business valuation

What’s your business worth? What will it be worth if you hit your growth goals within the next year? You need to have a sense of your value to confidently approach investors and ask for funding.

Determine how much of your company you will offer

You’ll likely have to give up a piece of your company when pursuing investment. It’s worth nailing down how much you are willing to let go before reaching out to investors.

Find alignment with investors

Are you and investors seeing eye-to-eye? If not, you may see decisions and actions that don’t match up with your expectations.

Know the differences between angel investors and venture capital

While angel investors and venture capital firms share similarities, they are more different than you may realize. Understand the differences to determine what option is best for your business.

Negotiate an investment deal

Rebuffing an offer and presenting a counteroffer can be intimidating, but knowing how to negotiate is necessary to get the best deal possible.

Watch out for contract terms

The pitch and negotiation are only the first step. Review your contract and ensure the terms match your expectations.

Handle rejection from investors

You’ll likely hear “no” more than you’ll hear “yes”. Don’t give up and take it as a learning experience to refine your next attempt.

Maintain a capitalization (cap) table

A cap table shows who owns how much of your business. This is necessary if you take on investments or partners.

Angel investment funding explained

An angel investor is typically an individual or group that has spare cash available and is willing to provide capital for a promising start-up or business expansion. They often invest smaller amounts than venture capitalists and are willing to do so for businesses in earlier stages of growth.

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Check out our resources to help you connect with these types of investors.

How to land funding from angel investors

What does it take to successfully get funding from angel investors? Check out these tips from seasoned investor and business planning expert, Tim Berry, to improve your chances.

Questions angel investors will ask

Preparing to pitch to an investor and being asked a question that you don’t have a good answer to is a nightmare. Here are some common questions angel investors will ask to help you avoid that issue.

Common myths about angel investment

With angel investment being rare, plenty of rumors and exaggerations have become embedded in entrepreneurship culture. Be aware of the five most common myths.

Learning from angel investors as a business owner

Funding is often the first priority for business owners. But working with angel investors also provides the opportunity to learn from their experiences.

Optimize your business website to attract investors

Struggling to connect with investors? Fine-tune your business website to make a good first impression.

Angel investor blogs to read

These blogs provide crucial insight into the world of angel investment.

Venture capital funding explained

Venture capitalists provide capital for businesses with high growth potential. Unfortunately, this type of funding only accounts for less than 1% of funding for US businesses. But if you have a strong initial interest in your business and a solid roadmap for fast-growth or potential growth into a large company, you might consider it.

Check out our resources to help you out.

Pros and cons of venture capital funding

Higher amounts of funding are a great reason to pursue funding from venture capitalists. However, there are drawbacks to be aware of.

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Venture capital blogs to read

Get the inside scoop on what venture capitalists care about and are focused on in the near future by checking out our selection of the best venture capital blogs.

Books to read to prepare for venture capital funding

Want to improve your chances of getting funding? Check out our selection of books to prepare you to go after venture capital funding.

Investor templates and tools

Resources to help you prepare to pitch to venture capitalists and angel investors.

How to Get Venture Capital and Angel Investor Funding

Free business plan template

Showcase your business structure, performance, and potential with a detailed business plan that includes everything investors expect.

How to Get Venture Capital and Angel Investor Funding

Free Pitch Deck Template:

Impress investors with visuals that back up your business plan and showcase your potential growth.

How to Get Venture Capital and Angel Investor Funding

Confidently pitch your idea to investors with LivePlan. Create and share your plan, pitch, and financial forecasts with a single powerful tool.

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