For impressing in an interview/pitch, be concise, truthful, and address the most important business issues. Research the person you are presenting to and explain why your business is a good fit.
For running your own business, focus on what is important to your business and where the profit is generated. Know the details of your business.
For surviving a recession, think about how customers are feeling and flex your business model to remain relevant. Protect your job by demonstrating commitment to your employer.
2. Objective
How to attract angel investors
Characters of angel investors
Type of angel investors
3. Angel Finance
Estimates suggest angels provide more capital than VCs
Small business association estimates that 250,000 angels
commit $20bn each year to over 30,000 private
companies
Fenn and Liang 1998: 2/3 of high tech IPOs backed by
angels, 1/3 by VCs (some overlap)
Invest smaller amounts/less follow up investments than VCs
Although there are network of angels/informal networks
that “syndicate”
• No systematic data for angel investments
4. Angel Finance (cont.)
Advantages:
Provides expertise and advise?
Invests own capital and is not intermediary
Finance “just for fun”
Disadvantages:
Limited capital
6. Business Angel 101
1. Who are business angels
Business angels
Diaspora business angels Angel Investment Criteria
Other business angels People
1. What types of Investments
Low end: $10K individual
Investments
High end: $1M+ syndicated
investment
Context
1. Benefits of Business Angels
Invest their own money
Contribute more than
money (advice, (Business) Opportunity Deal
introductions, etc.)
Flexible Source: Harvard Business School
7. Angel Financing vs.VC Financing
Investors have fewer control rights
Contracts appear less contingent
Funding less tied to future relationships
8. Angel Contracts
Andrew Wong (2002): “Angel Finance: The Other Venture Capital”
• Firm <1 year old when getting angel financing
• Do not rely on as much control mechanisms as VC:
Seldom receives board seats
Not much staging
Common equity, without anti-dilution or contingent equity claims
• But allows entrepreneur to hold larger stake
• Close geographical proximity
(informal substitute to control?)
9. Considerations
Why do firms not get VC financing?
Negative NPV
Hold-up problems
VCs organization
Contractibility
10. Duncan Bannatyne
For impressing in an interview/pitch
Be concise and do not spend 4 minutes presenting a
presentation if you can do it in 1 minute.
For running your own business
Stay focused and work hard.
For surviving the recession
Do not spend a penny unless absolutely necessary, focus
on cash flow rather than profit.
For getting your product to market
Use what ever PR sources are available to you.
For winning investment
Present yourself to as many investors as you can. If you are
turned down ask why and use the advise when preparing
your next pitch.
For making millions
Read my autobiography "Anyone Can Do It".
11. For impressing in an interview/pitch
Dress smartly (a tie is not always necessary)
Research the subject/business as much as possible
Answer questions with honesty and precision
For running your own business
Work in a subject area that you love
Theo Paphitis
Understand the detail – if you are new there are many sites like
Businesslink and smarta.com that are full of useful tips and advice
Write down your business plan
For surviving the recession
Work sharper and smarter e.g. small, tight teams
Watch your overheads
Don't forget to invest in people i.e. keep training
For getting your product to market
Get true feedback from those other than friends (as they will always be
kind)
Agree target audiences and ways you are going to tackle them
Invest in great design and strong promotion
For winning investment
Have a business plan
Demonstrate your achievements to date, ideally financial ones
Get testimonials and support from respected third parties
For making millions
Look for business opportunities with scale i.e. ones that have potential to
grow
Make your first £100,000, knowing the rest will be far easier
Always keep your feet on the ground
12. For impressing in an interview/pitch
Be clear, concise, and honest. Address the most important business
issues upfront. Do not waffle, do not make things up. Your pitch or
interview doesn't have to be perfect, just credible.
Doing your homework on the person you are presenting too and
Deborah
Meaden
explaining why you/your business is the perfect fit will also impress.
For running your own business
Know what is important to your business and where and how the profit is
generated and spend your time on that.
For surviving the recession
Think about how your customer is feeling and behaving in the current
climate and flex your model to make sure it is relevant and
appealing.
For winning investment
Choose your target investor wisely, tell them why they should invest and
what returns they will achieve in a clear, concise, and credible way.
Explain what you require from them and what you will offer in return.
Simple, but not easy!
For making millions
Being a millionaire is not a career. It is something that happens because
you do something of value that enough people want to pay for.
For you to become a millionaire you simply need to provide a product
or service to a large enough market, at a viable price - that's it!
13. For impressing in an interview/pitch
Be truthful, spell out your achievements but don't make up
qualifications and previous jobs. If you are honest you will
establish a reputation for reliability with your boss and
Peter Jones
colleagues.
For running your own business
Be results orientated, this will help you to be more motivated,
and leave you with a sense of achievement when you reach
your goals. Think carefully about what you want, and then
focus on how to get there. You'd be amazed at how many
people don't do this.
For surviving the recession
Protect your job by making your boss aware of how
committed you are
For getting your product to market
Create a strong brand identity
For winning investment
Passion and commitment are vital ingredients of a winning
pitch
For making millions
Always be confident, believe in what you are doing and
don't waver. You won't persuade other people to believe in
you if you don't believe in yourself.
14. For impressing in an interview/pitch
James Caan
Dress appropriately - simple but true
Be concise and focused
Make sure the pitch is of mutual benefit and that you can
clearly describe that
Know your numbers
For running your own business
In one phrase - the devil is in the detail
For surviving the recession
With change comes opportunity - seize it when you see it
For getting your product to market
Get it OUT THERE - be seen to be sold
Don't take no for an answer
Communicate face to face and over the phone - don't hide
behind a computer
For winning investment
Know your numbers, your market, your product, your
competition
For making millions
Unfortunately there is no secret recipe - great businesses are
5% concept, 95% execution- so believe me, there is no
substitute for hard work, I'm sorry to say.
Editor's Notes
People The people in the deal, including the entrepreneur, team members, investors, advisors, and any significant stakeholders. Business opportunity The potential business opportunity, which includes the business model, the size (which implies the potential returns), the customers, and the window within which it can be seized. Context The macro-situation, which includes external factors, such as: technology development, customer desires, the state of the economy, industry trends, etc. Deal The structure of the deal, its terms and pricing.