6 productive insights that will help startups to find angels
A famous Chinese proverb says, “The best time to plant a tree was 20 years ago. The second best time is now.”
No one ever said it’s an easy task to be an entrepreneur and overnight success stories you hear are backed with a lot of hard work of teams burning the mid-night oil. Right from the early stage of your startup, finding a way to fund your idea, having a working capital to run daily operations and having some more to scale all of these is crucial. It is easy to hatch an idea, whereas bringing up and implementing the same could be quiet challenging. In this money oriented world, it is what fuels and gives shape to your creativity and idea.
Are you a start-up looking for an Angel investor?
Are you looking for someone (An Angel Investor) who could give wings to your idea?
If yes, below are some productive insights that will help you find angel investors. Finding an investor for your start up is the first buttonhole. While some entrepreneurs opt for loans or crowdfunding, others seek out angel investors, individuals or groups who invest in early stage or start-up companies in exchange for an equity ownership interest. But, identifying the one(s) who might be interested and also be willing to invest in your idea demands understanding how angels work and what are they looking for.
Broadcasting your idea description to flocks of angels and hoping that one will swoop down to anoint you with funding is not how it works. Following are some productive insights which might help you to figure out your angel investor:
- Create an Ambitious team: Angels prefer strong teams to big ideas. That means not only you, your team should speak with the same level of enthusiasm and drive towards your idea. Angels should be convinced that they are going to invest in an idea and people who have capability to deliver the company’s vision & goals. Make sure to choose partners and key team members based on complimentary skills.
- Pitch your plan effectively: When it comes are investing for a startups, the angels look for extra discipline and effort in your way of demonstrating the idea. Your friends or crowd funders might give you money with no plan but an angel investor won’t without a solid written plan. Include all the details from your business model till exit strategy making the investor see how both of you will make reasonable returns.
- Bring Clarity for a better view: Understand what an angel would get excited about or get worried about as an equal mix. Be transparent and address/explain the risks involved. Looking at all the probabilities of success and downfall will give you and your investor a better picture of the future of the business.
- Show them credibility in your idea: You need to project your business concept and implementation process in a structured manner to make it easy for investors to believe in you. Crowdfunding is an excellent way to prove market validation and sometimes angels use this as a filter to determine if the startup is promising enough or not.
- Most important part is “Your Goal”: Focus on building the best possible product or services with a good cause. Startups are often worried more about the limelight than focusing on how their product or services can make lives better. The efficiency and quality delivered by your company is the key to success. If you get that part right, everything else will fall on its place.
- Show integrity and Respect towards your investors: Remember angels are business people just like you and me. They expect certain amount of respect and integrity towards their position, like they would towards your situation. Do not expect them to entertain your big ego or failure, do your homework to avoid such a situation for both of you.
The investment game could sometimes be cold and hard. But if you do thorough research and keep your head straight, your chances of long-term success are good.