How To Pitch Your Start-Up To An Angel Investor
For an entrepreneur, one of the most important steps in terms of growing the business is through the mode of angel investors and angel funding. However unique and niche your start-up maybe, if you are unable to pitch it to potential investors, you will not be able to grow your business. A good, solid and well-spoken pitch are key to gain funding for your start-up. Angel Investors are approached by hundreds of start-ups to invest in them. This means that your pitch must be unique, well-rehearsed, well-researched and to the point.
Preparing a proper and solid pitch for your start-up makes sure that you know the inside and out of your business. When you decide to look for investors, knowing everything about the business is imperative because you can be sure that you’ll be asked questions about it. With that being said, I’m going to bring out a few points that you must keep in mind while preparing a pitch for angel investors. As a financial advisor in Mumbai myself, I help coach and advise start-ups in many of these aspects and as such will draw from my own experiences as well.
1. Practice, practice, practice
Practice makes perfect. Before even thinking about pitching your start-up to an angel investor, you must be well-versed with every little detail about your company. You have to make sure your pitch is crisp and to the point. Make it as concise as possible. Take the time to practice every word you are going to speak in this meeting. The minute you start rambling it becomes a problem.
Most entrepreneurs believe that just because they know everything about their start-up they will be fine and that practice is not needed. This is where the misstep occurs. Just a visually stunning presentation and your wits will not help you in the pitch. So practising what you want to communicate to them becomes very important.
2. Keep it personal
As much as angel investors are investing in a start-up, they are also investing in you. As such it’s important to be personable and engage with them and your team. Start your pitch presentation with a personal touch. You can introduce your team and show the investors how the idea for the business came about. Talk about the trials and tribulations faced in the journey till now.
Showcase your experience and your tenacity in the business. Demonstrate your experience and knowledge in the field your start-up operates in. Prove in some way to the angel investors why they should invest in your start-up.
3. Highlight the business opportunity
Now let’s be honest, most entrepreneurs take a lot of time during their pitch to talk about how the idea of this business came to them. While it’s important to highlight the backstory, we must not forget that this whole pitch is to gain investors who in turn will gain some form of profit by investing. As such highlighting the business opportunities and the places where profits can be made is even more important than the backstory.
In detail highlight the commercial opportunity that the angel investor will miss if he/she does not invest in your start-up. Speak about the customer satisfaction that will be achieved if your product or service does well in the market. Taking this route has proven to be more beneficial in the long run.
To Sum Up
These are just a few basic points that should be kept in mind while pitching to angel investors. In your pitch be sure to include aspects of your business model, business plan, customer acquisition, customer retention etc.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.