What Angel Investors Want To Hear From You
It can be hard for a startup entrepreneur to try and seek investment from angel investors if you aren’t prepared. Let’s say you bump into an angel investor and you know that this is the best opportunity in your life to get your idea out there. The problem is that comes when your unprepared and do not know what to say. Let’s see what angel investors want to hear from you.
How Your Product Can Change The Society
Angel investors is like every other investor, they want to hear about their return. It’s not that you cannot be the next Mcdonald, but chances are unlikely and their return isn’t going to be the quickest. Angel investors want to hear that you have a product that will change people’s life. Imagine all the things that would be different if this world didn’t have Facebook or Twitter.
Have a good story
Stories are powerful and amazing. If your story relates to the angel investor, chances are that the angel investor will have more interest in your product/idea. Most angel investors have been entrepreneurs and have been through exactly what you have been through. They have seen startups rise and fall and been through it themselves. Most of the angel investors claim that the reason they invest is because they want to help like-minded people. Angel investors are normally a little bit more loose than VCs.
For any angel investor to consider your startup idea, you must show passion. Passion is what brings the story alive. Angel investors don’t want to spend their time and money on someone who gets tired of work. Instead, they want to see someone energetic, passionate, and can work the whole day without feeling bored. Make sure your passion gets heard in front of them. Mix in the story with passion and you will have the angel investors listening.
What is your exit strategy. Is it IPO, getting acquired?, or merging? Angel investors usually predict that if successful, they should gain back their investment within 8 years. Technically, they want to know how they will get their money back. When starting a startup always have a plan and exit strategy in mind. You want to be as well planned as possible.
Investors want to see more than just hear about your product, they want to see it! Chances are if you only have an idea, the angel won’t follow through. Another option is to give up a high equity in the beginning for a brilliant idea and team, but this will hurt you quite a lot in the long run. If your a tech startup, an ideal number should be 500 regular users and 50 paid user minimum. Imagine if someone told you about a product that you have never seen before and they are asking for 150,000$ in a presale order, would you buy it? Angel investors think the same, so try your best to create a minimum viable product for your startup.
What problem does it solve?
Remember, angel investors want world changing products. You might not think of it this way, but each time you create a product your solving a problem. Whether you are a music app wanting to provide more entertainment to the audience or a local food search app, in the end of the day you are solving a problem. Try to show passion about the problem your solving and how your product directly effects it.