July 24, 2013
Angel investors should be your best friends.
These private and wealthy investors have often been serial entrepreneurs themselves, thus understanding exactly what it takes for a business to succeed.
Still, how do you ensure that these angel investors will provide you with seed money to make your business get off the ground?
You donâ€™t have the money necessary to fund your own business, which is why you have to rely on these people. Here are some strategies on how you can increase your chances of getting angel investor funding.
Make a Personal Connection With Them
Making a personal connection is so important when youâ€™re courting these types of investors. Angel investors are known to spend quite a bit of time with other entrepreneurs in the early phases of building a new company. This will help to build chemistry between the two of you, so itâ€™s imperative that you do get alone with these investors. Chemistry is all about whether you trust, respect and like each other enough to do business with one another.
Adopt Patience and Persistence
Increasing your chances of angel investors to fund you is all about both patience and persistence. Three qualities that you should have in addition to these are being thick-skinned, passionate and highly committed. The process of raising capital is one that will take up a lot of your time and cause you lots of potential bruises to your ego, but you must persevere. Expect to spend many months trying to raise capital for your venture, which is why patience and persistence are necessary.
Understand Your Angel Investors
You must be picky about whom you decide to take money from. This means that you must really know your angel when you accept money from him. Make sure that you comprehend exactly his expectations and motivations for both the exit strategy and also the return on investment or ROI. Make sure you understand precisely what added value he will bring to your table. Expert angels with great connections can really help your company get off the ground.
With these tricks of the trade, you can certainly increase the chances that you will receive angel investor funding.
Learn exactly with whom youâ€™re dealing, and gain their confidence by making a connection with them. Then, work on being both persistent and patient as you try hard to land that seed money you know your business deserves.
All the best,
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