• How To Get Funding If You're A Startup - Impressing Angel Investors

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    Business angels are experienced business professionals who bring not only capital but experience, knowledge and contacts. Unlike VCs who're looking for big investment opportunities, the typical angel generally invests smaller amounts - like $30K to $100K. Before she invests in a business she'll examine the idea carefully and needs to be convinced on several scores. It pays her to be pessimistic, and rather than paper over cracks she'll look at the best ways of filling them. She'll also bring experience with running businesses - dealing with lawyers, accountants etc., negotiating contracts, getting licences, securing intellectual property, managing finances, hiring personnel and all the other nitty gritty that underpins a good business. Her contacts could also prove useful. Her network of contacts often makes the difference between success and failure of the venture.

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    So what impresses angels?

    1. Let your enthusiasm show: .
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    2. Sell the facts, not the dream: However excited you are about the project and its potential, investors want to see hard facts. For example, have you studied the market? "I'm sure the product will be very popular" won't cut it. Demonstrate why you believe the product will be popular. Show the size of the market. Prove that there isn't competition. Produce market research. Show survey results. Quote stats from reputable sources.

    3. Invest in the dream yourself: Do you really believe this will be successful? If you've given up your job and remortgaged your house to the hilt (or tried to), that's commitment. The investor is more likely to take a chance on you if you're taking a chance on yourself. If you're hedging your bets - keeping a full time job elsewhere, not exploiting all the sources available to you to raise funds in your own name etc - you are a bad bet. .
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    4. Build yourself up: .
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    5. Make the business case: .
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