The Do's and Don'ts of meetings with an Angel Investor (from an Angel Investor!)

When you first meet with an Angel Investor you're bound to feel a tad apprehensive. After all, you've usually got a lot riding on the success of these meetings so it's important to get it right from the start. 
 
We posed some questions to our Angel members to find out what their suggested "do's" and "don'ts" are. Here is what they said:
 
DO'S
  • Lay out ALL the skeletons! There are not many businesses out there that are perfect, and the likelihood is that an Angel Investor has heard it all before. If you're honest and upfront from the start not only will you be saving both yourself and the Investor a lot of time (because it will all come out in the due diligence stage) but you will increase the chance of a positive outcome if you've shown integrity. Building trust with an Investor is so important. 
  • Get to understand what the Angel is looking for and what they can offer you. It's a two way street. As much as an Investor is getting to know you and your business it's also important for you to get to know them. Ask yourself the questions: Could I work with them? What value could they bring to the table? Do they know your industry? Do they fill some of the gaps in your team's skillset? 
  • Show an understanding of your customers and how to reach them. Even if an Angel Investor knows your sector and route to market well they want to know that you do. Know the size of your market opportunity and demonstrate your knowledge of your customer base.
DON'TS
  • Don't overvalue your business. In terms of the financial of brand equity be realistic. 
  • Don't Just target investors for their money alone. Always seek out Angels that can add more value to the business than just capital. People you can work with, learn from and open up wider networks for your products/services. 
  • Don't pretend to be someone that you're not. People invest in people. It's important to be yourself and lay all the cards on the table. Our Investors always invest in a grade A team with a grade B product and never the other way around. People at are the centre of all Investment opportunities that come through our door, so let them get to know you!  
Use the time as a learning experience. Even if you don't get Investor interest, leave the meeting with ideas on how you could improve for next time. Make notes on the questions that you've been asked, the areas you didn't cover and the feedback you were given. This will prove invaluable for your next Investor meeting.  
 
If you would like to find out more about pitching at one of our Angel Groups just get in touch