[jp2010]

I've found a few angels interested in investing. I've read a lot about angels, but when it comes down to it... what should I be prepared to, and not to, reveal when I meet with an angel? A concise non-disclosure and non-compete agreement are staples, but how much do you tell them about yourself? How much is appropriate to ask about them?

If anyone met with angels: what presented and how (or spoken), what were his or her reactions, and what would you suggest to other young entrepreneurs after having met one or several?

JP.

[GuyBBY]

Jp- Great post...I also have the same question and hope someone has the answer and some suggestions...

I noticed you were from Boston which is why I replied. We have a YE group in Boston and I schedule meet-n-greets and have an email list. PM me if you want to be in contact to come out, we have everyone from lawyers to Ph.D students, financial analysts to tradesmen...it's a very nice group and we encourage helping one another and growing towards each of our goals.

Best

Guy

[PretzelBabies]

Where did you find your "angels"?

[jasaunders]

Originally Posted by jp2010

I've found a few angels interested in investing. I've read a lot about angels, but when it comes down to it... what should I be prepared to, and not to, reveal when I meet with an angel? A concise non-disclosure and non-compete agreement are staples, but how much do you tell them about yourself? How much is appropriate to ask about them?

If anyone met with angels: what presented and how (or spoken), what were his or her reactions, and what would you suggest to other young entrepreneurs after having met one or several?

JP.

Well to start with, NDA and NCA's are not staples and most angels will shun at being asked to sign them.

When presenting to angels, the hardest part will be squeezing in all your details in the time given. You have to balance what information is essential with information that is just 'good to know.'

One of the most important things is to define the problem you are solving as soon as possible in your presentation. Lay out upfront what the problem is and how your product or service solves this.

Make sure to also explain the market for the product, how big it is, and who your target market is. Under no circumstances say something like "The market is 10 million people and if we could just get 10% of those people, then we will be successful." This is garbage and the number one thing angels say they hate about pitches.

Don't throw up random numbers or a complete financial statement. Show one or a couple slides of financials, but summarize them to show the potential of the business and justify your position.

Lastly, make sure you touch on your experience and that of your management team and/or advisory board. Your past experience and knowledge of the industry is critical to the investment decision.

Remember, its a sales pitch. You need to be able to sell people. You need to show you are excited about your product/service and you really believe in it. I have seen some presentations that were just awful because the presentor showed no enthusiasm for their own business, even if the business itself might have been decent. So have some energy when presenting and don't lose your cool if you are asked some tough questions.

[CLICK ME!]

This might help.

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Advice for Acquiring Funding

I've heard a fair amount of talk about different funding options for your startup and/or the expansion of an existing venture, so I decided to post this bit of succinct, yet profound advice on such a topic:

From JakePitt.com | A Blog about How to Make Money Blogging

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What Investors and Lendors Look for in a Business Plan

There’re a lot of entrepreneurs out there who have a great entrepreneurial spirit and some pretty rockin’ ideas, but who don’t really understand what they need to do to get the funds to make their dreams reality.

Obviously, havin’ kicked it for a couple years in VC, I’ve got an inside scoop as to what investors, as well as lenders, are lookin’ for amidst the flood of business plans that come through the door every day. You ready?! Let’s go for a ride:

Is your business idea solid? This seems obvious, right? You’d be surprised how many not-so-solid ideas walk through the door. To be solid, you need to have at least one of five things: (1) something new, (2) something better, (3) a new or underserved market (as I’ll get into next), (4) a new way of or channel for gettin’ somethin’ to customers, or (5) more integration. If you don’t have at least one of these, you better just start over.

Does a sufficient market exist for your product? Whether the market for your product is new or underserved, isn’t a make or break. But whether the market for your product is sufficient definitely is. I don’t care how great your idea is, if the market doesn’t exist to support it, you’ve got no chance. Every stage of the development of your product needs to be based on givin’ your customers value so as to create a sufficient market. For more on the importance of givin’ your customers value, check out: JakePitt.com | A Blog about How to Make Money Blogging » Blog Archive » The Essence of Business: VALUE.

Are your financial projections worthwhile yet realistic? A very key component of a business plan is your financials. Plain and simple, if you’re not gonna make enough, you’re not gonna get funded. On the flipside, one of the biggest mistakes you can make is to just make numbers and then grow ‘em at a great rate over a few years in order to make your idea look good. Uh uh. Bad idea. The first question you’re gonna get asked is how you came up with your numbers. Do research. Find comparable companies. Analyze your market. You need to have SOME basis for your numbers. From there, I say go with the highest numbers that you can defend.

Is your business idea in line with the investor or lender’s patterns? This is where a little homework can save ya some wasted time. If you’ve got a great idea for a new dog collar, but you’re approachin’ a VC firm that specializes in medical technology, it doesn’t matter how happy it’ll make Rover, you’re not gettin’ your cash. Similarly, if banks only lend to borrowers that fall within certain categories and you’re not in one, you’re not in the money either. Just do you’re homework.

Are the key members of management experienced and capable? I’m a firm believer that it’s the actual people runnin’ the show that make it or break it. As I often remind my readers, I invest in people, not projects. No matter how great the idea, if you don’t have experienced and capable managers outlined in your plan, an investor or lender isn’t gonna touch it without at least demandin’ that its own managers be put in place. If you don’t wanna be put in that situation, bring some experienced and capable managers on board on your own, even if just as Advisory Board members.

Does the plan clearly describe how the investor or lender will get paid? Newsflash, Walter Cronkite, investors and lenders aren’t fundin’ your great idea because they think you’re a nice guy or chick or because they are feelin’ generous. They’re doin’ it because they think they can gain by doin’ it. To help ‘em realize this, make your investor’s exit strategy or your repayment to the lender very clear. THIS is what they really wanna know. THIS is how they make their money and why they’re in the game.

When you’re puttin’ together that rockin’ business plan, keep these questions in mind. If you can’t answer “Yes” to ‘em, investors and lenders aren’t gonna answer “Yes” to you either.

Rock it! -JP

[jp2010]

This is a good reminder of what is good to focus on. Thank you.