Angel investors often help businesses in order to raise capital, which may arguably be termed as a challenging aspect for starting a new business. As the risk factor on capital return is extremely high, angel investors nowadays are highly careful and give it a considerable thought before investing. Thus, it is critical for entrepreneurs who wish to attract angel investors, to be well prepared and competent. We shall discuss six aspects needed for attracting angel investors, from an entrepreneur’s perspective
Valuation
The foremost thing would be to quote the capital required in a clear manner to the potential angel investors. However, care must be taken to ensure that you are spot on with your figure and not overshooting the estimated cost figure needed. As angel investors have so many opportunities to invest, they look for a proposal that offers minimum investment in return for a sizeable profit margin.
Return on Investment
What is the main aim of angel investors? The answer would be simple, to earn as much return on the investment they have made. So if your proposal can show them enough promise to maybe show a return of minimum five times on the initial investment, the angel investor maybe captivated to invest in your business.
Future prediction
Another aspect very closely linked to the ROI would be that of the sales estimate in the foreseeable future. Angel investors carry a grip of the market and often ask the entrepreneurs about the sales figure they assume the firm will achieve in a certain amount of time. Quoting a high sales figure doesn’t mean you can pull off the deal. It is important to be promising as well as realistic, which will help the investor in thinking about the credibility of your proposed plan of action.
Innovation
Be innovative and share with your angel investor ideas that are not common enough in the current market. Such ideas in your presentation can certainly capture the attention of angel investors.
Thinking capability
As the question is related to investment, angel investors often ask tricky questions to the entrepreneurs during or after the presentation for testing the mettle. A good entrepreneur will be impromptu in his or her approach, while giving confident replies. Lot of this stems from the knowledge you possess regarding your business ideas.
Presentation
Though many people fail to acknowledge this aspect, it is critical to be neat and tidy with your presentation. Try to make your point in simple and key points rather than being descriptive through your slides. Also, give proper insights into each point mentioned, which will help the potential angel investors to understand the concept of your business venture in a better way.
