After selling my startup, the first big “purchase” I made was an investment in another startup.
I loved the idea of angel investing; I wanted to give back to the community that supported me when my startup was little more than a crazy idea. I wanted to be involved with promising startups outside of my own space. And, of course, I wanted to make more money.
I’m still just a baby angel, with a lot left to learn. But what’s surprised me most about my foray into angel investing is how much it has taught me about being a better fundraiser. Here are 10 things I’ve learned about fundraising after becoming an angel investor myself:
Tell a Good Story
Storytelling is the most effective way to convince someone of something. A powerful narrative captures our attention, tugs at our heartstrings and makes us vulnerable. Investors have to sit through a lot of boring meetings. Make it easy for them to pay attention.
Be Crystal Clear About What You’re Selling
It’s always surprising to me how many entrepreneurs are unable to clearly explain what they’re selling. If after reading through your pitch, watching your video, perusing your AngelList profile, and speaking with you for half an hour, if I’m still unable to explain to my husband in two sentences what you do, I’m not going to invest.
If you can’t explain what you do in two sentences, how will I?
It doesn’t matter how complicated your technology is, or how obscure the problem is that you’re trying to solve. You must find a way to distill it into something an intelligent layperson can understand. If you’re unable to do that, my assumption is you can’t explain your product to your customers either.
Make Your Presentation Pretty
Design matters. For the same reason good design matters for your product, it matters for your presentation. Investors are just as impressionable as your average consumer. Pretty slides send a signal that you know how to build a good product. (This may matter less in hardcore technology or enterprise startups, but it certainly doesn’t hurt.)
Good design alone won’t get me to write a check, but it will impress the hell out of me. I’m a sucker for pretty pictures, just like everyone else. Use that to your advantage.
Anticipate Their Questions
As you’re developing your pitch, try to anticipate the questions that will arise on each slide. For major questions. . . (Read More)
Article by: Prerna Gupta
Published at: smallbusiness.foxbusiness.com