RAF – FAQ’s 2 of 20 How Do I Pitch to Angels?

Raising Angel Finance – Frequently Asked Questions 2 of 20

How do I Pitch to Angels?

Almost everyone wants to cut to the chase and  grab their slot to do an elevator pitch a three minute pitch or an even longer pitch directly to the man or woman with the money.

I think their thought process goes something like this:  “If I can only speak directly to someone with the cash, they will love me and my proposal and will instantly whip out a cheque book or direct me to get my people to speak to their people and a deal will be done”.

This is delusion.

The first thing to consider is that people with money get asked to part company with it all of the time…from everyone they meet who knows they have it.

They have seen everything from the next Facebook to the property deal that will 10x their investment and they know that in the real world, there is little chance of a deal happening at first pass, so if you do happen to meet one informally, they will be polite but it’s highly unlikely that they will give you their contact details or even follow up with you if you try and shove a deal down their throat.

You will have heard it said before that it can take up to 7 “touch points” before an investor will be ready to part with money.  This is true to a certain extent.  I have had investment from people that I’ve never even met, so I know it can happen, but most first time entrepreneurs or developers must follow the route of least resistance and follow the systems and processes most likely to secure investment.

  1. People buy people. Your potential investors would like to get to know you a bit.  Now that can be by looking at your digital footprint.  Are you on Twitter, Facebook, LInkedIn or Instagram?  Do you have a website? Do you have a blog?  What will I find if I do an online search. What are people saying about you?  Or that can be at an event or in a ‘phone call or Skype call.
  2. Provide a Summary of your proposal – Angels want to see a snapshot at the early stage, not reams and reams of paper, spreadsheets and business plans.  Ideally one A4 page will do.  There is a link at the bottom of this post that will direct you to a template.
  3. Get an introduction – There are Angel syndicates, investment clubs, family offices, accountants and lawyers who all know Angel Investors and an introduction from them will go a long way.   Yes, you can of course meet people at the golf club or in a variety of other places and I would encourage you to network as much as possible, but wait until you have passed the 7-touch point mark before offering up your latest proposal. Ideally what you should be doing is showing them the last deal you did and the great return that you offered to friends or family.

If you have had an introduction and you get an opportunity to pitch directly to real investors, it is an opportunity not to be missed.

At Property Angels Den we organise events where we arrange for 20+ Angel Investors to gather in a city centre venue (usually a large lawyers office) and they listen to 3 x 10 minute pitches with a further 10 mins Q & A.  This allows investors to express interest and follow up later on with due diligence. This way, we cut down the time it takes to get investment and entrepreneurs or developers get valuable feedback.

 

This and many more subjects will be expanded on in the Raising Angel Finance Course on the 30th of April or the 18th June 2016 in Peterborough. For more information contact; karlenepartridge@progressiveproperty.co.uk

Ray is a shareholder and Regional Manager for www.AngelsDen.com and Property Angels Den where investors are introduced to entrepreneurs or developers seeking finance. If you have a proposal click here: Application form page:  http://www.designedliving.co.uk/investment-application-form.html

If you are interested in becoming an Angel Investor, Click here: http://www.becomeanangel.com

RAF – FAQ’s 1 of 20 Is Angels Den like Dragon’s Den?

Raising Angel Finance – Frequently Asked Questions 1 of 20

Is  Angels Den like Dragons Den?

This question is Number 1 on this list simply because I get asked it more than any other.  My reply is quite simple: “Dragon’s Den is the Pantomime version of what we do for real”.

The reality is that it gives a poor impression of how Angel Investors operate.  In fact it’s a sort of opposite of the way Angels operate.

The main differences are:

  1. Angel Investors are not all £50m business owners.  Some of them have a few hundred thousand to invest – but they might have much more to offer in terms of experience or contacts.
  1. They are not arrogant about their abilities and their contacts and they don’t need to sell themselves to you either in front of other investors or in private.
  1. Real Angel investors are vetted by us and are defined by FCA regulations.  For example they need to be either High Net Worth Individuals or sophisticated investors.  You can get the full definition here: http://www.thebusinessangel.org/high-net-worth-investors.html
  1. Real Angel investors take much longer to consider an investment before making a formal offer.  In fact they will take time to do their Due Diligence BEFORE making an offer as opposed to afterwards like on the telly.  There is one exception to this, and that’s with offers made via CrowdFunding.  In that situation all the diligence must be done before the offer is placed live on the portal or website.
  1. Angel investors are very interested in the Exit and this is something that is hardly ever brought up on the telly version.

As well as differences there are three main similarities;

  1. Angel investors are quick to spot good investments when they are well-presented (Another reason for you to take advantage of Train the Trainer or any of the Speaking Courses offered)
  1. They look for the credibility of the presenter and the opportunity.  Does it stack up?  Is it scalable? Is there room for a decent return on their investment either as equity or a loan?
  1. Angels will expect you to know your numbers.

This and many more subjects will be expanded on in the Raising AngelFinance Course on the 30th of April or the 18th June 2016 in Peterborough. For more information contact; karlenepartridge@progressiveproperty.co.uk

Ray is a shareholder and Regional Manager for www.AngelsDen.com and Property Angels Den where investors are introduced to entrepreneurs or developers seeking finance. If you have a proposal click here: Application form page:  http://www.designedliving.co.uk/investment-application-form.html

If you are interested in becoming an Angel Investor, Click here: http://www.becomeanangel.com

Course Dates

The first Raising angel Finance Course  (RAF Course) took take place on 30th April and 1st May 2016 (Sold Out) at the Progressive offices in Peterborough.

The second course on 18th and 19th of June 2016 (Sold Out).

The third course on 24th and 25th September 2016 (Sold Out).

First Course of 2017 will be 14th and 15th January (23 places left)

There are three main reasons to attend:

  1. You will discover how to go from a 90{6ed5f7189c5bb0831d6a981be4de5e8bfaffc7a4e981952dd9077ebe2a6e456b} failure rate to a 90{6ed5f7189c5bb0831d6a981be4de5e8bfaffc7a4e981952dd9077ebe2a6e456b} success rate when approaching Investors.
  2. As well as finding investment for your own deals, you could become the go-to person in your area for funding.
  3. You can earn serious money by introducing deals to brokers.

You can find out more information here: Course Information