Angel investors

Angel Investors Share Tips for Successful Business Pitches

As any entrepreneur knows, having support from angel investors in the early days can make all the difference when it comes to the success, or failure, of a startup company. It’s a boost just to know that someone has faith in you, as a person, and your idea – but real cash means you can really get started, whether that money is put toward concept development, engineers or gaining user traction.

But what is it that helps you get that investment in the first place? Company Check recently carried out a survey with 3,000 UK business leaders to find out what they think an investor cares most about when deciding whether to back a company. Their answer? Two-thirds of respondents (38 percent) thought the business plan was the most important factor in any investor’s decision to back a company; above any previous sales (27 percent), the founder (15 percent), the idea (9 percent), or the economy (8 percent).

When we asked a group of successful angel investors the same question, they said that they would take into account the personality and experience of the entrepreneur over the business plan. As you can see, their responses were very different to that of the business owner looking for investment.

Shows like “The Apprentice” and “Dragons’ Den” align more closely with the views of the expert investors than with the business leaders in the above survey. In “The Apprentice” for example, the emphasis is on the characters week-on-week, and it’s only in the final episode where we get to hear the detail of their business plan. Equally in “Dragons’ Den,” there have been times when the investors have said, “I’m out,” because they think they’d struggle working with the entrepreneur.



If you present yourself with confidence when pitching your business, you’re already halfway there. The idea has to be a good one, but investors can help you improve once on board, sharing their knowledge. So how do you make sure you come across well in your pitch, and secure the angel investors you want? Here are my top four tips:

Be prepared

Have your pitch nailed down tight. You should be able to explain it in one minute and then go into the details afterward. Experienced angel investors have heard hundreds of pitches and most can judge very quickly whether they like the idea, if it fits in with their portfolio goals and if it has a chance of success. Remember: investors hear hundreds of pitches, and yours is just another one. Be prepared for rejection, but ask questions and treat it as a learning experience.

Open with a story

There’s evidence to support the notion that pitches can be improved with storytelling, so open up and share something personal with investors. Why are you doing this, what led you to the conclusion that this idea is smarter than others, what does it mean to you and why do you think it can scale? This will help you connect with investors and add a human angle to the business rationale.



Pitch perfect

Your pitch needs to be smooth and practiced, so run through it with friends and peers, know the objections and have logical answers for them. Face the hard questions first and the rest are easier.

Be human

Pitching is serious business, but that doesn’t mean you can’t stray from your story in order to share an anecdote if it adds a human element to the business and gets the point across as to why your idea is the answer to a problem, even if it is a problem people didn’t know they had. Gauge the investor reaction and use the knowledge you gained from the background research you carried out on the investor before meeting to try and connect with them.

Total
3
Shares
Previous Article
Cloud backup and recovery

6 Reasons Why Your Business Should Move to the Cloud

Next Article
Privacy policy mistakes

4 Common Privacy Policy Mistakes to Avoid When Starting a Business

Related Posts
pitch your business idea
Read More

How to Pitch Your Business Idea to Startup Investors

Securing funding, whether for a startup or an established business, is not an easy task. A strong startup concept won’t be enough when approaching investors; you'll also need an exceptional pitch to sell it. Let's look at what defines a startup pitch, a few different types, and how to create a fantastic one for your...
home-based businesses
Read More

The Value of Home-Based Businesses to Economic Recovery

The challenge of America’s economic recovery, in the wake of the COVID-19 pandemic, is to spread it to every community – and especially those that have been historically excluded. The key to meeting that challenge is to appreciate the civic and economic value of an overlooked resource: home-based businesses. There are about 16 million home-based...
Read More

WJR Business Beat: Job Switchers Rewarded with Higher Pay (Episode 406)

On today's Business Beat, Jeff Sloan talks about how it's going to be more difficult and costly for small businesses to hire the best talent because job switchers during the pandemic have seen significant salary hikes. Tune in to today's Business Beat for more:   Tune in to News/Talk 760 AM WJR weekday mornings at...
startup team
Read More

5 Strategies for Building a Great Startup Team

The way you treat your employees, their time, skills and abilities in the early phases of your union as a team influences the rest of your company's course of action. Mark Zuckerberg once said, "The most important thing for you as an entrepreneur trying to build something is, you need to build a really good...