Angel investors are the business angels you badly need for your startup. Unlike venture capitalists, they are not into the deal purely for profits. They support you during the difficult startup phase. They invest money one time or support you throughout early stages in exchange for equity. There are a few mistakes every entrepreneur makes when pitching to an Angel investors. These mistakes should be avoided if you chose to seal the deal.
Lengthy business plans
Presenting a thorough business plan is a good practice. Nonetheless, when you make it excessively lengthy, prospects don’t take the time to look into your pitch. Include just a short yet detailed executive summary. Chip in a power point deck, which wouldn’t be too much time consuming for investors.
Not showing market potential
Assuming the investors will know market opportunity for your product or service is a blunder. You need to introduce your investor to the entire scope of your business. You need to express your genuine excitement about the market opportunity.
Being unaware of competition:
Being unaware of your competition is a cardinal sin in business. You don’t want your investors to see that. Make sure you do enough research about your competitors, their revenue numbers and so on. Make sure to know what challenges they will bring to your startup.
Not presenting your team
Investors prefer seeing everyone involved in your business. Include your team in your presentation. Let them explain their areas of expertise. It makes your whole setup looks more professional. You add more compelling value to your pitch too.
Do not present unrealistic valuations in your pitch. Value your business for what you own currently. You can add some more after considering scope of your business. However an impractical number is going to turn off angel investors.