When someone is looking to get a business off the ground, one of the most important aspects is financial capital. After all, without money to invest in the framework of the business, it is never going to have something worth selling to others. One of the most important sources of investment comes in the form of an angel investor. These are powerful, connected individuals who are typically members of a larger company or network. They can leverage their tremendous capital and networking abilities to help a business get off the ground quickly. At the same time, recruiting these individuals and getting them to invest in a company is not easy. There are a few key ways that this recruiting process should be handled.
First, make sure to get the fundamentals of the business right. When pitching to an angel investor, the details are going to matter. Angels are going to look for company founders who can do more than talk in a beautiful way. The business team is going to need to deliver the right mix of risk and potential return. The goal of the angel is to garner a large return on their investment. This means being able to objectively show that this potential exists.
Next, make sure that the audience is taken into account. Not every group of angels is going to be the same. This might mean pitching to different groups of people in different ways. Figure out who the angels are and what they care about. Then, tailor the pitch to meet the individual needs of the angel. Make sure to know the metrics and data behind the company and tailor this to answer the questions of the angels. Companies that develop their pitches based on these principles have a greater chance of success.
Finally, make sure the angels know where they are going to fit in. Nobody wants to be treated like an ATM and these angels offer so much more than money. Be sure to explain to the angels how this is going to happen. While angels are looking to achieve a return, they also want to feel like a part of the company. Consider offering the angel a seat on the board of directors. Show the angel that his or her mentorship and guidance are going to valued. Provide a way for angels to play a role in strategic decision-making. All of this is going to matter.
It is important for companies to know how to recruit angels properly. Angels can provide the capital and connections that are necessary to take a business to new heights. Prepare for any interaction with an angel investor wholeheartedly. These opportunities need to be valued.