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Raising Angel Money

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Is angel funding the best funding option for your startup?
How can you best attract angels?
What are angels looking for?

To learn more about angel investors, check out this presentation from Kevin Smith, Co-Founder and CEO of seedchange (www.seedchange.com) and EGFS (www.earlygrowthfinancialservices.com).

Topics covered include:

- What is an angel
- Are you the kind of company that angels will invest in
- How can you connect with angel investors
- Top questions that angels ask
- What angels DON'T care about
- The angel decision making process and timeline

Published in: Business
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Raising Angel Money

  1. 1. Raising Angel Money #angelmoney
  2. 2. About Your Hosts Kevin Smith Founder and CEO Erika Malzberg Chief Marketing Officer
  3. 3. Who’s an angel? • High/Very high net worth • Live in tech hubs • Typically invest locally • Well-educated • Part-time investor • Sees 50-250 startups/year • May be member of angel group www.seedchange.com
  4. 4. What kind of companies do angels invest in? • Companies who are in seed or early stage • Diverse: In technology, clean tech, fin tech, healthcare • Looking for: Solve a problem, management team, IP, business model www.seedchange.com
  5. 5. How do entrepreneurs connect with angels? • Full time, 12 hours/day, 4-6 months • Rely on your network • Must have persistence and outstanding communications skills • Objectives o Get introductions to 100-250 investors o Meet 50-100 investors o Follow up with 25-75 investors o Conduct diligence process with 25-50 investors o Get checks from 8-15 investors
  6. 6. Questions angels ask Product What’s your business about? Why will people use your product? How do you make money? Market How big is your market? Who’s your competition? Distribution? Have you talked to customers? Product-market fit? Team How did the founders meet? Who is on (and not on) your team? Risks What is the biggest problem you need to solve now? Technology and IP Funding Justification/Use of Funds Milestones Financial projections Think ahead to Series A www.seedchange.com
  7. 7. Questions angels don’t ask (but they’re really thinking…!) • Do the founders like each other? • Do I trust you? • Can you sell? • Can you build a team? • Can we work together? • Is anyone else going to invest? • Why isn’t XYZ going to crush you? www.seedchange.com
  8. 8. Non-rational criteria Founders Do I identify with you? Industry University Experience Product Cool factor Resolving personal pain Market Personal experience Interest www.seedchange.com
  9. 9. Angel decision-making timeline Contact Meeting #2 Meeting #5 Meeting #6 Meeting #3 Meeting #1 Meeting #4 $ www.seedchange.com
  10. 10. Decision-making process… Elevator pitch Pitch deck Founder info Product Market Business model Competition Domain expertise Intelligence Communication skills Persistence Integrity Relationship Customer Market size Competition Prob/Solution Traction Product-Market fit Product overview Market Product www.seedchange.com
  11. 11. Decision-making process Tech Financials Deal Legal Tech team Use of funds Milestones Growth plan Amount Terms Investors Regulatory threat Formation Stock IP www.seedchange.com
  12. 12. Funding Pitch Guidelines • Tell a story • Problem • Solution • Market size • Business model • Competition • IP • Team • 10-12 slides maximum • One key point/slide: Backup data in appendix • Don’t read it from slides www.seedchange.com
  13. 13. Valuations What is the valuation of my startup? • Based on traction • Based on geographical comps • Entrepreneur ask vs investor tell? www.seedchange.com
  14. 14. Q&A and Thank You! Kevin Smith 415 Jackson Street San Francisco, CA 94111 www.seedchange.com info@seedchange.com 1.877.711.9883 @seedchange Erika Malzberg www.earlygrowthfinancialservices.com contact@earlygrowthfinancialservices.com 415.234.3437 @EarlyGrowthFS

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