Here are the 6 things companies need to do in this altered financing environment to survive and raise angel funding:
Read MoreTop 6 Tips on Raising Angel Financing in 2021
Questions an Investor will ask a Founder
When you pitch your business to investors, you want to get questions. If you don’t get questions, then your pitch fell flat and nobody is interested. So, plan on answering questions—and hope you have some to answer!
Read MoreThe 4 Key Stages in Capital Raising Processes
You’ve developed a product and won a handful of customers. But now you face the biggest challenge of your venture’s short life – you don’t have enough cash to pay your employees and suppliers. Should you shut down or can you convince investors to keep your venture afloat? Typically only less than 10% of entrepreneurs that seeking money from investors will make it through the entire 4 stage process.
Read MoreWho are angels and what are their motivations
When you are making a pitch & ultimately getting angel investors on board with your company, its important to know who you are dealing with and what their motivations are.
Read MoreWhat’s Your Valuation? 3 Must-Know Matrixs
What is a Valuation and Why is It So Critical To Know?
Unfortunately, 90% of the entrepreneurs that I meet don’t really know what a valuation is. I totally empathize with all these entrepreneurs’ ignorance because I didn’t know this stuff either when I started raising capital for my first company.
Read MoreGuide to Raising Angel Funding
What is Angel funding?
Equity or Angel funding is a lump sum of money paid for a share of the entrepreneur’s business, but thereafter it is far from simple. Unlike debt funding, the Angel shares the risks with the Entrepreneur. Business Angels take the highest risk of any other investor and fund their investment out of their own pocket, not via other stakeholders. They invest at a very early stage of the business development and, as a result of this level of risk, usually take a higher share percentage.
Read MoreAngel financing – How to value your company
Unfortunately there is no clear cut formula you can use. As with trying to value anything that is unique, such as a work of art, valuation ultimately comes down to a meeting of the minds of what the holder agrees to sell at and what the purchaser agrees to buy at.
Read MoreAngel Financing – How long until I get the money?
In any early stage company, availabiliy of cash to fund operations & growth is an area of prime concern. So in this article I will talk about the timelines around securing angel financing. I will outline a hypothetical week by week timeline as a company progresses through the funding process. Obviously every situation will be unique so take this all in context.
Read MoreAngel Financing – How to work the pitch process
When pitching to angels through an organized angel group, there is a multi-step process you need to go through. Your end goal is obviously to close a round of financing. However depending on what stage you are at in the process your goals for that step will be different. The best analogy is thinking about the process you go through to apply for a job at a large corporation. So to illustrate, lets walk through the steps for both:
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