Pitching to an angel investor can be nerve-wracking considering most investors reject three- quarters of proposals. Luckily, the Canadian angel environment is vibrant, and investors are always looking for new opportunities. How can your venture impress and grab the attention of angel investors given the highly competitive nature of the business world? Here are 5 key things angels look for in ventures before they invest.
1. Market Size
When an angel is looking to potentially invest in your venture, the market size can make it or break it. When pitching the market size, include characteristics of the target market (market growth, early customers and other competitors in the industry). Angels want to invest in solutions that address major problems, and they want ambitious entrepreneurs who will commit to dominating the market.
2. Solid Business Plan
Every investor needs to see that your venture has a concrete business plan, addressing the problem being solved and how money will be made. Angel investors look for business models that are clear, written out and backed up by solid research (market surveys, competition and proof of return). Successful business plans should strongly emphasize finances and target market.
3. Strong Team
Strong commitment, credibility and a proven track record of meeting deadlines and managing goals are just few of the qualities that angels want to see before they decide to invest. A team that has proven their performance with great personality, determination and passion is likely to win over the trust of an angel.
4. Concrete Financial Strategy
The numbers in your pitch should align if you want to prove to an investor that your business is financially stable. Investors want to see that your startup is capable of growth, can handle financial obligations and has a solid valuation. Ensure that you have your revenue streams, acquisition costs and turnover rates available to be evaluated before you pitch.
5. Uniqueness
The uniqueness of your product or service will stand out to potential investors, as they understand the risk involved when a startup enters a competitive market. Prove that your venture is different and more valuable compared to other businesses in the industry and you’ll be sure to attract an angel investor.
Angel investors not only support ventures financially, they also help mentor, give advice, provide networking opportunities and guide entrepreneurs onto the path of successful business ownership. If you want an angel investor on your team, prove to them that the future of your business exists with uniqueness, personality, a strong financial strategy and a solid business plan.
Sarah Amormino is poet and freelance writer based in Vancouver’s Lower Mainland area. Her written work has appeared in The Toronto Guardian, Simon Fraser University’s 2017 Emerge Anthology, and multiple independent art publications.