Contents
Landing Funding From Angel Investors
Wondering how to land funding from angel investors? The answer depends on your location and the specifics of your business.
This article focuses on angel investors in the U.S. and the process of raising angel investment for high-tech or high-growth startups. It differs in other countries and is almost impossible for established businesses without high growth potential.
Angel investment is distinct from venture capital. While people often use "venture capital" to include angel investment, it causes unnecessary confusion. Angel investment typically occurs before venture capital at earlier business stages. Venture capital typically follows angel investment for startups that continue to grow.
Angel investors comprise a diverse range of investors, not as formally established as venture capitalist firms and not as homogenous. Angel investors can be successful business people, wealthy individuals, groups of professionals like doctors or dentists, local investment clubs, or completely different individuals. For example, your angel could be a rich uncle.
Venture capital, on the other hand, refers to investments from formal venture capital firms run by professionals who invest others’ money.
Here are the key steps to landing funding from angel investors:
1. Finish your business plan
If you haven’t written a business plan yet, start now. Keep it concise and use a Lean Planning approach.
Reasons why you need a business plan:
- To estimate your funding requirements
- To map priorities, milestones, financial prospects, strategy, and tactics
- To outline key numbers and points for summaries and pitches
- To communicate with investors during due diligence after generating interest
2. Create your executive summary or one-page pitch
Develop a compelling business plan executive summary to communicate with investors. Prepare an exciting email, keeping it to one page maximum, outlining growth prospects, business type, and potential investor payoff. Craft an investor summary memo or one-page business pitch.
LivePlan’s Pitch tool simplifies the creation of visually compelling, concise pitches for investors.
Please check the revised text and let me know if you need further assistance.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!