Tips for raising angel funds
Milan Vrekic, TitanFile Inc., @truejebus, Halifax, NS, CYBF Entrepreneur
Here are four simple tips that every entrepreneur should keep in mind when seeking angel funds for his or her business.
1. Know your numbers: Nothing can kill your pitch faster than not knowing where your business stands financially and what your targets are. Knowing your numbers tells potential investors that you did your homework.
2. Name your competitors: Saying that you have no competitors indicates to potential investors that either there is no market for your product or service or that you do not view existing alternatives as competition when they likely are. It also tells investors you don’t know who you are up against.
3. Be direct: To a direct question, always give a direct answer, even if it is not all positive. If you are asked a question that you doing know the answer to, it’s ok to say “I do not know, I will get back to you on that question”. Embellishing the truth might get you through the pitch but it will back-fire in the due diligence stage once the truth comes out.
4. Hold the champagne: Investors can change their minds at any point during the negotiation and back out of the deal. Be sure the details are finalized and you have the cash in the bank before you consider it a ‘done deal’.