• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Submissions
  • About Us
  • Contact Us
  • Aug 9, 2022
  • Startup
    • Creating a Plan
    • Funding a Startup
    • Franchise Center
    • Getting Your Office Ready
    • Making Your Business Official
    • Marketing Your New Business
    • Personal Readiness
  • Run & Grow
    • Customer Service
    • Human Resources
    • Innovation
    • Legal
    • Operations
    • Risk Management
  • Leadership
    • Best Practices
    • Communication
    • Green Initiatives
    • Open Culture
    • Strategic Planning
    • People Skills
  • Sales & Marketing
    • Advertising and Lead Generation
    • Marketing Innovations
    • Marketing Plans
    • Online Marketing
    • Relationships
    • Sales Activities
  • Finance
    • Budgeting and Personal Finance
    • Payments and Collections
    • Tax and Accounting
    • Pricing Strategy
    • Working with Investors
    • Working with Lenders
  • Tech
    • eCommerce
    • Hardware
    • Software
    • Security
    • Tech Reviews
    • Telecom
  • Shop

SmallBizClub

Helping You Succeed

Home / Startup / Funding a Startup / My Advice to Startups Seeking Angel Investment
My Advice to Startups Seeking Angel Investment

My Advice to Startups Seeking Angel Investment

968 Views

Jun 15, 2018 By Tim Berry

Over the weekend I was asked what advice I’d give to founders of a startup seeking angel investment. Here’s my list.

  1. First, make sure you really want angel investment. Read 10 good reasons not to seek investors for your startup. Take it to heart. If you don’t need investment, really, you are better off without it. And also, read startup sweet spot.
  2. If you do, then next, make sure your business is a good investment. Read up on what makes a business a good investment. It’s about the team, the growth potential, ability to scale, traction, etc. Many great businesses are not good investments. Read Do you have what investors want and angel investment self assessment.
  3. Wait until you’re ready. Don’t seek investors before you have a team in place, milestones met, numbers to show, good evidence of traction and validation. Investors invest in businesses, not plans, and definitely not ideas. Sometimes they invest in people, like known startup successes with great track records; but if you were one of those, you’d know it.
  4. Know the basics. Understand the normal process. Research investors near you, interested in your industry, and target specific people and groups. Never spread cold emails all over the map.
  5. Investors invest in your business, not your pitch. What they buy into is the business, the facts, the achievements; not the pitching. If you don’t have milestones met, progress made, concrete numbers to show, then don’t waste your time. You need an intro or profile or summary first, and then a pitch, and, if they are still interested, a business plan for due diligence. But don’t ever mistake the plan, profile, and pitch for what matters. You tell them about the business.
  6. Do a lean business plan first, before the profiles, before the pitch. It’s for you, not the investors. It’s just bullet points, milestones, metrics, and projections. You need to know how much you need, and what you’re going to spend it on, before you start. Review it and revise it. A pitch without a plan is like a movie filmed without a screenplay. Don’t sweat the big plan with all the summaries and descriptions, at least not at first. Maybe not ever. But have a plan, keep it fresh, review and revise often.

(Note: I posted this first as an answer to a Quora question.)

Filed Under: Funding a Startup Tagged With: Angel Investors, Startups

Source: Tim Berry

Tim Berry

Tim Berry

Tim Berry is co-founder of Have Presence, founder and Chairman of Palo Alto Software, founder of bplans.com, and a co-founder of Borland International. He is author of books and software including LivePlan and Business Plan Pro, The Plan-As-You-Go Business Plan, and Lean Business Planning, published by Motivational Press in 2015. He has a Stanford MBA degree and degrees with honors from the University of Oregon and the University of Notre Dame. He taught starting a business at the University of Oregon for 11 years.

Related Posts

  • Startup Investment: What’s The Secret to Investing in the Startup World?
  • How to Grow Your Business Finances Through Angel Investing & the Stock Market
  • Top 5 Reasons to Invest in a Self Storage Business

Primary Sidebar

Random

Is Your Business Suffering from Cash Flow Difficulties?

Aug 29, 2014 By SmallBizClub

How to Instill Great Customer Service Habits in Your Staff

Apr 16, 2015 By ScheduleBase

What is an S Corporation?

Jul 19, 2019 By TaxConnections

4 Online Businesses You Can Start from Home

Dec 22, 2016 By 1800Accountant

Business-Focused, People-Centric

Aug 25, 2016 By Dave Brock

Footer

About Us

Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Copyright © 2022 by Tarkenton Institute, Inc. All Rights Reserved | Terms | Privacy