How to approach angel investors successfully

13 September, 2021

Should I bootstrap and depend on my own savings or should I look for funding from other wealthy investors who can fund my business? How can I grow my business without having enough money and cash flow? How can I raise enough capital to start my small business?

If you have these questions in your mind, this article is for you.

There are different funding options for startups and small businesses; Venture Capitals, Crowdfunding, Bootstrapping, Loans, Grants, but one of the most used funding options out there is angel investors.

Who are angel investors in the first place?

Angels, so, are individuals who invest their own money in ventures, projects, and businesses. In best-case scenarios, they are wealthy individuals who have the expertise to share in a specific field and who can support the small business/venture by providing money and funding too.

Angel investors can be a great help for starting your business and approaching angel investors is becoming an essential part of building and growing any business; however, some entrepreneurs might get a little overwhelmed when the word angel investor is brought up and this is due to the challenges associated with raising the capital they have built up throughout their journeys.

To be honest, it can be such a challenge to get in touch with investors and convince them in funding your project.

Most entrepreneurs find it difficult to approach and succeed in securing money from angel investors, so if you are one of these entrepreneurs, here are steps that will help you successfully approach the right angel investors for your small business:

  • First make sure that your business profile is good enough

  • Angels are individuals who invest their own money, so they want to make sure that they are investing in the right business and not wasting their hard-owned money on projects that might not be successful in the long run.

    Therefore, build a strong profile before you walk into the room and make sure that you have enough experience and knowledge under your belt.

    A strong good profile of your business manifesting the features of your product(s), the financial statement of your business, your business management plan, your potential employees and your current team, and finally where your business stands in the market, is necessary to catch investors’ attention and keeping that attention.

    Make sure your pitch deck reflects how good your business actually is content-wise and form-wise. How professional your pitch deck is will say a lot about you as a founder/team and how much thought and effort you have put into the business.

  • Attending investors and pitching events

  • Showing up on the scene is very beneficial for you to attract angel investors who are actively looking for the next business to invest in. This can be done by attending events whereby entrepreneurs have the chance to meet up with investors face-to-face. On top of that, being social and having many connections are great ways in asserting your presence and promoting your business. Getting around and immersing yourself as much as you can and introducing your business to investors on a large-scale basis is key.

    Furthermore, attending online events can be a great way to spend your quarantine or non-quarantine evenings making new connections and networking with investors and business experts – even if you are too lazy to leave your own bedroom.

  • The power of connections

  • Finding angel investors directly is tough because some of them tend to keep their profession and strategies for themselves in order to avoid constant hassling. Sending a cold call via LinkedIn, Facebook or Twitter to an angel investors might work sometimes but it is not a great solution at all.

    In most cases, you need to be referred to an angel investor. It is always better to have a third party or a consultant who can introduce you to angel investors. This uppers your chances of getting funded considerably.

    It’s not an easy task to find angel investors who are willing to listen to you. Therefore, make sure to get active on social media and navigate through the right websites and platforms, but to maximize your chances, do it in a smart and effienct way.

Finding angel investors online can be achieved in many ways. You can easily start by googling it. You can Google “investors’ network in [country]” or “investors’ network in [industry]”. You can also do that by searching for businesses similar to yours that have raised capital, (or scored major funding) and go through their profiles and have an idea about how they successfully raised the capital needed.