When discussing angel investors with our experts this month, one fact stood out above the rest:
Create a good pitch.
It’s important to network, of course: You have to find those who might be interested in investing in your company.
But in order to secure the investor, you have to grab their attention with a good pitch.
This not only includes the initial spiel you give, but it means writing a plan that outlines exactly what you will do with the money.
Steve Nielsen of PartnerUp.com says the elevator pitch is an important piece of attracting the angel investor since it tells the investor about the idea in a limited amount of time and words.
Says Steve, “I occasionally invest in promising start ups and as an angel investor, there is nothing more frustrating than meeting someone who a friend has introduced you to, only to meet with them for coffee or lunch and spend hours listening to them tell stories.”
The elevator pitch should be:
- short – just a few minutes
- concise – tell it like it is; what is your idea, what is your company, and what will you do with the money
Avoid overly long explanations; these can be written up in an executive plan. In fact, the executive plan should be a little longer written document of 3-5 pages or so that:
- gives a time line of the expectations you have for the company
- notes what you will do with money received
- is very detailed