How to Pitch Angel Investors By Stephen Van Beaver 01/09/14

 In 2011, 264,000+ active U.S. angel investors  In 2011, $21 billion invested in more than 58,000 early stage companies  Average investment for each company $362,000  By contrast, venture capitalists made 460+ investments (mostly later stage companies) averaging about $7.5 million per company Source: 2011 Boston College Entrepreneurial Center Angel Investors

 Extensive networking via friends, family, social media, businesses, community, internet, universities, etc.  “Connect” with a potential investor  Via personal/professional relationship  Experience in your industry  Domain expertise  Unique attention grabber Finding an Investor

 Record of investing in your industry  Investment criteria – size, type, time period  Personal & professional references  Involvement – passive, active, operational Investor Compatibility

 Do not ask other people for money unless you’ve spent your own on this business  Thoroughly vet your pitch beforehand  People experienced in your industry  Targeted customers  Seasoned business people Pitch Preparation

 You’re got 15 minutes so make every word, graph and/or picture count!  12 – 15 PowerPoint slides  Keep it simple and concise  Be yourself – Do not oversell  Practice, Practice, Practice Pitch Preparation

Pitch Content  Problem  Solution  Market Size  Competition  Product or Service  Business Model  Team  Financials

 Is the business idea simple enough for me to understand and buy into?  Does it solve a problem or meet a need?  Is there a big enough market and customer base for the idea, i.e. viable business model?  Does the entrepreneur have the right people on the team to pull it off? Investor’s Initial Questions

 Don't clearly explain the problem you solve or the need you meet  Too many facts and numbers  Unrealistic sales forecasts  Too attached to your business plan  Lack of conviction Common Pitch Mistakes

Entrepreneur Qualities Primary trait: The ability to evolve!  Disciplined  Confident  Open Minded  Self-Starter  Competitive  Creative  Determined  Strong people skills  Strong work ethic  Passionate

 Ask for unanswered questions  Decide on next steps with time frame  Follow-up within a few days “Close” the Pitch

Questions