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What things should an entrepreneur have noted, ready to present an investment opportunity to an Angel Investor?

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What would you want to see/hear if you were about to hand over $100k or $500k to a person you didn't know? – TimJ Oct 5 '11 at 19:04
Nice touch @Joseph :) – Ross Oct 6 '11 at 5:45
@Ross Thanks -- we need more cool fun pictures on this site. – Joseph Barisonzi Oct 6 '11 at 5:48
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Note, that we don't own the copyright and this can be problematic. – Ross Oct 6 '11 at 5:50

2 Answers

And if there is not definite answer (i.e. projected sales) err on the optimistic side.

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In no particular order - this is a braindump!

  • Know your business model
    • You need a valuation of your business; intimately know your numbers
    • Project how the business will perform going forwards (sales assumptions)
    • Understand what you need to do in order to get the business to the next milestone
    • Business defensibility (what stops others just copying you)
  • Know your competition
    • How big are they
    • What is their turnover
    • How mature are they (still growing?)
  • Know your product
    • Product margin
    • Product defensibility
  • Know your market/customers
    • Why will they buy your product
    • Evidence that potential customers like your product
    • How big is the market (in terms of $$$'s) and how much do you intend to take and how?
  • What are you going to do with the angel money?
    • Compelling reasons why you need extra investment
  • How is the investment going to generate a return for the investor?
    • At the end of the day the Angel is looking for a return on their investment. A chunky return. Be clear in your own mind how this will happen.
  • Why should they invest in me???
    • Investors, especially Angels, will invest in the person as much as the business. Make yourself as investable as possible. Knowing your stuff inside-out and having buckets of passion and a walk-thru-walls attitude is a great start.
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