Identify angel investors likely to invest in your startup based on their location and sector preferences. One way is to search for angels who have previously invested in startups that are similar (but not directly competitive) to your own.
Use your existing professional network to get a warm intro to your target angel investors. Entrepreneurs, startup attorneys, accelerator managers, and other startup service providers are likely to be good vectors for an intro.
If your target angel investor is speaking at an event, arrive early and introduce yourself before the event starts. Secure an agreement from the angel investor for a follow-on meeting at a later date.
A successful pitch is like an engaging movie trailer – it should clearly convey the gist of your business and provoke investors to engage. Be interesting, tell a memorable story, and make heavy use of visuals. 10 – 15 slides are all that’s needed.
Declare what your company does in a single sentence.
Describe your customer’s burning pain point.
Describe your product and explain why it makes the customer’s pain go away. Use examples.
Use both tops-down and bottoms-up. Segment and identify your sweet spot.
Explain how you make money. State your customer acquisition cost and lifetime value.
GO TO MARKET
Describe your sales distribution model.
List current customers, partners and users, as well as your pipeline.
List your competitors and describe your economic moat.
List your founders, key management and advisors.
If you are raising your first round of funding, you would typically sell between 20% – 35% of your company to investors. Based on the amount of money that you need to raise, you can mathematically back into a reasonable valuation range.
The HALO Report provides national data on startup valuations that can be a helpful reference. As valuations vary by location, you should also consult local angels on the typical range for your region.