Table of Contents
What does an angel investor ask for?
The investors will want to get a sense of how the company plans to market itself, the cost of acquiring a customer, and the long-term value of a customer. So, be prepared for the following: How does the company market or plan to market its products or services? What is the cost of a customer acquisition?
What do you give to potential investors?
What information do I need to provide to potential investors?
- Video Pitch.
- Investor Slide Deck.
- Business Plan (depending on the age of the company)
- Financial Forecast (profit & loss statement, cash flow, and balance sheet)
What should an entrepreneur do before approaching a potential investor for funding?
Here are five things to you must do before approaching investors for any amount of money.
- Clean up your credit.
- Line up your team.
- Write a detailed business plan.
- Do your homework on your backers.
- Create an investor wish list.
Which among the three main documents is to be signed by investors?
Financial statements.
- Income statement.
- Balance sheet.
- Statement of stockholders’ equity.
- Capital requirements.
How much equity do you need to offer angel investors?
As an angel investor, it is unlikely that you will want to settle for a single-digit percentage stake. Rather, more plausibly the ballpark will be in the 20-40\% range. Seek ways to safeguard your money.
What do angelangel investors want to know?
Angel investors also want to know you have a plan to grow so that their money is put to good use. If your focus for raising investments is marketing spend, you need to have a plan in place to handle an increase in orders.
How to find an angel investor for your business?
Look for an angel investor whose buy-and-sell timeline or buy-and-hold strategy matches your own goals. Once an agreement in principle is reached, the due diligence process begins. This is a thorough review of your financial and business records to verify the information you gave in your pitch.
What are the pros and cons of getting money from angel investors?
And of course, one of the best benefits of getting money from angel investors is that you don’t have to pay anything back (at least, in the form of a periodic payment). The money is yours to use for the business. Which brings us to the big con: losing equity in your business.
Do angel investors have to be accredited investors?
Technically speaking, angel investors must be accredited investors, but increasingly, you’ll see business owners’ investing family and friends described as angel investors—even if they don’t meet the wealth requirements. What’s an accredited investor?