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MenuWhat is the best way to reach angel investors for my start-up?
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There are a number of different ways of reaching angel investors.
First, identify the type of angel investor you are looking for.
Then initially look within your own network, share what you are doing and you might be surprised.
Next research where your investors hang out and try and be part of the conversation.
Maybe there are incubators or accelerators that would be suitable and who can support you or facilitate investor introductions, meetings, and pitch events.
Maybe it might make sense to seek a grant or get funding from a partner who would also benefit such as in the education sector?
Another option that takes time is to find and connect to your investor audience through networks such as LinkedIn.
You can then nurture those relationships over time, ask for advice, keep them updated, take conversations offline, and establish trust.
Then probably after 6+ months of nurturing when you do raise funds, you should have earned a warm relationship that will allow you to approach them with regards to potentially funding your business.
Warm intros are definitely the best approach. Once you have your initial investors keep building relationships and they may recommend new investors next time round.
Worth noting with angels there is smart and dumb money and you may find that a coach/mentor from your sector provides more value compared to an angel who may be able to support you but on a more general high level. But as a rule of thumb always ask for support, your investors will usually provide, they are aligned with your potential success.
Good luck!
In most cases, you need to be referred to an angel investor. So, to find angel investors you need to get to know the right person, which means immersing yourself in your local business and social community. Focus on business owners – as these are the people who might be or become angel investors themselves or know an angel investor. While there are some angel investors who invest entirely on their own, many operate as part of an informal network or syndicate where they can pool their resources and share the risks.
You can read more here: https://www.thebalancesmb.com/how-to-find-an-angel-investor-2948107
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
To address your question (how to reach the angel investors), it is advisable to answer the following question:
1. Is angel funding the best fit for your business capital structure? Have you designed your capital structure to meet your current needs and position to maximize your wealth in the future?
2. Is your current business really to look for angel investors? Do you have a list of criteria to achieve and a business sale package to impress the angel investors?
3. Do you conduct an evaluation to check whether you and your team are suitable/ suitable to accept an angel investor and/or new partner?
4. Have you develop some personas of the angel investors so that you know who to look for?
5. Do you have a deal flow strategy to include a) what to sell, b) who to invest, c) how to attract them, d) strategies to cover legal and commercial aspect, e) who to manage the business, f) how to manage investor relation, g) clean up documents & information for due diligence purpose, h) and so on ...
If you have the answers for all the above, you are on the right track - you know how to get your investors easily. If this is not the case, you can contact me and I can customise an advisory package for you based on the answers from the above questions.
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Is fundable.com a successful tool to help raise an equity seed round for a pre-launch startup?
We have used Fundable.com successfully for two rounds of financing both oversubscribed. Here is what I can tell you. Basic info: Fundable.com's platform connects accredited investors to startups seeking investment capital. Startups have a public facing profile that includes general information about the companies product, team, press accolade, etc. If you are raising funds claiming SEC Reg D 506(b) the public profile has no information about your securities offering. If an interested investor wants to view more information about your startup and or your offering, he/she would request access to your full profile. The investor must self accredit on the Fundable site before they are allowed to view your non-public profile. The startup is notified and you have the opportunity to conduct some due diligence on the investor (LinkedIn) and elect to invite them into your deal. Your private page includes the offering (terms). All communication from this point is done outside of the platform, meaning you have the investors email address ( a good thing to have). Fundable charges startups a flat monthly fee to post a profile on the site. In addition you can opt for additional services (help) with your campaign. For a flat fee, Fundable will assign resources to help build your profile, consult with you on your raise, and assist with PR or Marketing. This includes a blast to their investor base of over 40K if my memory serves me correctly. I am sure it is higher today. Our experience: For our first round on Fundable, we elected to use the premium service. Fundable did a great job in helping with our profile. We received 50+ views per day (quite often 100+) and on days we were included in their newsletter we received 200+ views. 10 - 20% of views requested access to our full profile. and 10-20% of those responded to my request for a call. Our close rate was very high. Both of our rounds were oversubscribed in less than 4 months taking averaging $50K per investor. These are high quality investors that have not created additional work (outside of normal investor updates). Many of our investors regularly share news and information about our industry. Several have re-invested in subsequent rounds. Disclaimer: Our startup is in the consumer hardware space which I believe tends to attract high net worth individuals. Obviously results may vary, thus I cannot speak to how well a SaaS play would do crowdfunding in general. Fundable.com's premium services offering may have changed since our campaign. I am not affiliated with Fundable.com. In fact we have been successful on other crowdfunding sites as well. In Closing: I am a proponent of crowdfunding in general. It is disrupting angel investing, providing investors with greater deal flow and exposing startups to an exponentially larger audience, increasing their chances to get in front of investors who understand and appreciate that company's solution and opportunity. Most importantly it is moving capital and driving innovation! Keep in mind, securities laws have changed and continue to change due to the Jobs act of 2012. Before you offer any securities to local investors or choose to try crowdfunding, you should consult with an attorney, and take the time to learn and understand what regulations apply to your circumstances.UB
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What percentage of VC funded startups make it to 100m+ revenues in 5 years or less?
100M+ in revenues in 5 years or less does not happen very often. As an example of one sector, here is an interesting data visualization (circa 2008) of the 100 largest publically traded software companies at that time that shows their actual revenue ramp-ups from SEC filings (only 4 out of these 100 successful companies managed this feat, which themselves are an extremely small percentage of all of the VC-funded software companies): How Long Does it Take to Build a Technology Empire? http://ipo-dashboards.com/wordpress/2009/08/how-long-does-it-take-to-build-a-technology-empire/ Key findings excerpted from the link above: "Only 28% of the nation’s most successful public software empires were rocketships. I’ve defined a rocket ship as a company that reached $50 million in annual sales in 6 years or less (this is the type of growth that typically appears in VC-funded business plans). A hot shot reaches $50m in 7 to 12 years. A slow burner takes 13 years or more. Interestingly, 50% of these companies took 9 or more years to reach $50m in revenue."MB
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How much dilution should I expect when raising a super angel round for 700k?
Im an investor and advisor. As many people as you ask, you will get different answers. The best and most successful way to raise capital is to start with people you know, aka friends and family. If friends and family are insufficient as they often are, then you need to find angels. If you dont know anyone, network. They arent hard to find. It might be a good idea to find a few prominent local people to serve as advisors and get their help in raising money. The worst part about raising money is that it almost always deflects from running the business. If you want to discuss this further, Im available.AC
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