How to convince a business angel to invest in my startup?
Download the Business Angels chapter
Many founders are for good reasons going to business angels for startup funding. Most have however very limited knowledge about business angels and how to convince angels to invest in their startup.
That’s why I in the Startup Funding book dedicated a 17-page chapter to business angel funding.
I have decided to give away the chapter for free (PDF). You can download the business angel chapter via this link: Business Angels – Startup Funding Book
The key take-away points from the business angel chapter:
- Most business angels are driven by more than money. If the only reward you offer is financial, you’ll lose a lot of potential business angels. You need to understand what drives an angel and what you have to offer against what they’re looking for. Look at what they’ve invested in the past.
- Not even business angels invest in business ideas. You need to show you can do it and you’ve got what it takes to keep on doing it. So before you knock on the door, you need to get going yourself. Get a team and get working on converting your idea into a business.
- Personal trust is one of the most important factors determining whether a business angel wants to invest.
- Look for angels who know you already, or who know the industry, because they’ll be more comfortable analysing the risk/reward of your startup, even if they don’t know who you are.
- Do your homework and your due diligence. Call companies the angel has invested in. Did they get what was promised? Get all your agreements down on paper – including those not about money
Nicolaj Højer Nielsen