How to Land Funding From Angel Investors

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
READ MORE  4 Business Funding Challenges and How to Overcome Them

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.

Leave a Reply

Your email address will not be published. Required fields are marked *