Angel investors all have very different motivations, passions and reasons for wanting to invest in a business. And just as many for not investing.
Our Co Angel team works with many investors and VCs and we wanted to know just what can turn them off in a pitch….
Pie in the sky profits– we’ve seen it time and again on Dragon’s Den and other investment programmes. Figures plucked from the air that out-do even the market leader. Any forecasting has to demonstrate that you’ve done your research and are being realistic.
Fighting feedback – after any pitch, feedback from seasoned business people is the most valuable thing that a start up can get. Expect good and bad, take it in your stride and listen up. If you’re right and they’re wrong any investor will be the first to congratulate you.
Not understanding the investor’s perspective – an Angel will be looking to recoup a significant multiple of what he is looking to invest. They know that it will sometimes be more and sometimes less but a start-up is a big risk and they need to see where that return will come from.
Fact not fiction – investors don’t have time to listen to a long drawn out pitch with very little useful information. Stop spinning information, be honest about what you’ve achieved and stick to the facts.
Our Co team is here to help you pitch for investment while avoiding some of these pitfalls. So if you have a great business concept but can’t seem to get anywhere with raising capital we can connect you with sector specific syndicates of business angels, looking to invest in businesses throughout Greater Manchester and the North West.
Or if you’re looking to invest in exciting local businesses we can help you find an idea to invest in as well as bringing you together with other like-minded investors to pool your skills and contacts and to invest in a wider range of companies to manage your risk.