Top 5 Tips on How to Attract Angel Investors
Did you know that attracting an angel investor is easier than ever before? In 2013, only 24% of U.S. women-owned ventures received angel investment, according to the Center for Venture Research. But there are now more people investing as angels globally, and many are specifically looking to support women entrepreneurs. Here’s what you can do to connect with them.
Approach investors only when you can show that demand exists.
When your product has been validated by your customers and when you have enough traction (users, clients, downloads), people will listen to you. Be sure that what you are doing works and is hot.
Use many resources and network often.
Online, you can review investors in angel.co, gust.com and f6s.com, as well as at LinkedIn, Facebook and Quora. Speak about your project, ask what you need and ask for recommendations and intros. Always be polite, brief and to the point. Offline, the best thing to do is to be actively involved in the local community, attend industry events and network your way to your investors. You should always be pitching since you do not know who could introduce you to the right person.
Keep the submission process fluid.
If the product is really good, the interest will be there. However, be sure to provide required information quickly and have all due diligence ready.
Founder Institute is a pre-acceleration education program that can be done from dozens of cities around the world. It’s great for first-time entrepreneurs, and you pay a small fee to participate. Once you are in, you must work very hard to be able to finish the program, since it is so demanding. But once you finish, you are ready. 500 Startups is an accelerator that has a number of programs around the world. Each has a different application and due date. The key for 500 is to have a small, talented team and a product that solves a very specific problem and can scale very fast.
Don’t just read, do. For initial education, I recommend reading Lean Startup Methodology by Eric Ries, and taking the Founder Institute course. Please do not read anything else. Just start and once you are “doing,” you will encounter problems you never knew you would have, and you will need to do deeper research then.
(For a list of angel investors interested in women entrepreneurs, check out this article!)
Click HERE to go back to the magazine.