6 Step Plan for Seeking Angel Capital - By: Robert Haynes

When you are seeking angel capital, you’re going to need a solid plan of action if you are to improve the chances of getting the investment that you need. Raising angel capital follows a similar action plan to that which you would use if you are raising venture capital. However, there are a few steps that are absolutely essential if you are to acquire the investment that you’re seeking, and you should ensure that you follow these carefully to increase your chances of success:

1. Send a Teaser Email
When you first want to make contact with an angel investor, there are different ways that you can go about this. The most effective way, however, is to send a teaser email to the angel investor to introduce yourself and provide a brief description of your company. This should contain only basic information about your company, rather than going into long and unnecessary detail, because if the investor is not interested then they will not want to read your whole business plan.

2. Detailed Research
Before you submit your business plan to an investor, it is essential that you carry out careful and detailed research. After the angel has shown an initial interest in your teaser email, you should already have an executive summary prepared which you can show them. This should contain no more than a brief business-plan synopsis.

3. Strategic Business Plan
When creating your business plan, you should ensure that you think it out very carefully in a strategic manner, and make sure that you include lots of research. When you have got it up to the right standard then you will be able to present this to investors. It should include surveys of your competition within the research, as well as presenting an in-depth plan of action and how you intend to reach every milestone you have set out.

4. Due Diligence Process
This process is the period in which the investors will review your business plan. It is a good idea at this stage to have a PowerPoint presentation prepared for your company as angel investors will probably want to see this during the due diligence period.

5. Effective PowerPoint Presentation
When you create your PowerPoint presentation you should ensure that it sticks to a few rules to make it more effective. It should be no longer than 10 slides, and the text no smaller than 30 point font. This is important, especially if you are seeking investment from an angel network, because you want to ensure that the investor can view the presentation with ease from a distance of about 10 or more feet in a meeting room.

6. Control Issues
These are critical because as an entrepreneur you want to make sure you can hold onto 51 percent of your company’s equity as a minimum. If you own the most equity then you control the company. You will also need to have management and seats on your board of directors, but angel investors are not always concerned about a seat on the board in the same way as venture capitalists.

Follow This Plan of Action When Seeking Capital for you business and raising venture capital.

About the Author

Are you looking for business funding? Venturesgained.com is the easiest way to get in touch with venture capital firms, business angels, private investors and all venture capitalists from London and whole UK.

Article Directory Source: http://www.articlerich.com/profile/Robert-Haynes/169790

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