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Pitcher perfect – Wooing angel investors

May 22, 2012 - Tags: Startup, Innovation, Financing

Istock 000004615638xsmallIf you need a new source of financing to start or expand your business, consider turning to angel investors. These individuals can help by investing their own money in return for equity in your business. Pitching angel investors may be a good idea after seeking funding from family and friends, before trying venture capital firms.

With one chance to make a perfect pitch, careful preparation is key. Take time to find angel investors who are good matches for your business, and set up an opportunity to make your pitch. Building a relationship is better than a generic approach like sending out a mass email.

To prepare, look at your pitch from the investors' perspective. You need to convince them that they'll make money and be able to exit with a profit when ready. Present your vision simply, and avoid getting bogged down by too many slides.

There are many points to consider while preparing your pitch:

  • Presenting a prototype rather than a concept shows that you invested time and money into producing something and can take a project through to the end.
  • Focus on the solution your business provides. What problem will it solve and how? How are consumers currently solving the problem?
  • Show how consumers benefit by choosing your business over the competition.
  • A well-crafted business plan is essential. How will you make enough profit to satisfy your investors?
  • Rather than using statistics and other numbers, draw the investor in by painting a more accessible picture. Personal examples can help. But do have a budget to show how you will use the money.
  • Flexibility is an asset. Be open to changing your product as the market demands.

While it is essential to be confident, be prepared to address how you will manage a variety of risks. But risk can be offset by opportunity: investors can offer you more than just money. How will you make the most of the wealth of experience, advice and networking opportunities that an angel investor may bring to the table?

Get more ideas from our sections on Accessing equity financing and Private sector financing, as well as our post entitled Is your elevator pitch ready?

Comments

Je suis en marche d’ouvrir un centre d’hébergement et de traitement pour persones étant aux prises avec une problématique face à la drogue, alcool et médicaments
Un besoin de plus en plus nécessaire actuellement

Je recherche du financement
Cela fait 9 mois que ma partenaire et moi travaillons sur ce rêve

By michel on June 9, 2012

Bonjour Michel,

Notre section intitulée Subventions et financement est un excellent endroit où commencer vos recherches pour trouver du financement. Cette section vous permet de fureter ou de faire des recherches sur les programmes de financement qu’offrent les divers ordres de gouvernement. Vous pouvez y choisir des critères tels que votre secteur d’activité, votre emplacement, le groupe démographique ciblé, ainsi que le but du financement.

La section Subventions et financement comprend aussi des liens qui mènent à des ressources financières provenant de la collectivité et du secteur privé. La plupart des prêteurs s’attendront à voir un plan d’affaires soigneusement préparé avant d’offrir de l’aide financière. Consultez notre section sur la Planification d’une entreprise pour en savoir plus sur la rédaction d’un plan d’affaires fructueux.

Pour obtenir plus de renseignements sur le démarrage d’une entreprise ou l’expansion d’une entreprise existante, adressez-vous  au centre de service Entreprises Canada de votre province ou territoire. Vous pouvez aussi nous joindre en composant le numéro sans frais 1-888-576-4444 (ATS 1-800-457-8466).

Nous vous souhaitons la meilleure des chances dans votre projet d’affaires.

By Canada Business on June 13, 2012

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