There are many startups today and every entrepreneur has ideas as to how to raise capital for their ground-breaking ideas, but in a place which is the #1 place for startups in the world, finding an angel investor is the first practice recommended (medium.com)
The differences between a venture capitalist and an angel investor are three; while a venture capitalist is harder to convince they have more capital to invest. Secondly, the angel investor wants to invest in profitable ventures and are more easy to convince. Three, Venture Capitalist won’t start an investment with less than $1 Million, while angel investors will begin investing with a smaller amount and go up to $1 Million.
First, when approaching either the venture capitalist or the angel investor keeps things simple. Follow the tried and true seven-second rule. These investors are busy people so keeping things to a minimum and intrigue them. If they want to know more and you have piqued their interest they will ask.
Secondly, be professional in your presentation, but steer clear of persons who are interjecting their own ideas into your presentation. In other words, always go with people who are interested in your project and not those who want to change the direction you are going. You’ll never be wrong in believing in what you have to offer.
Three, be willing to admit you don’t know something if stumped by a question one of your investors asks. Investors are savvy people and understand the difference between someone who is willing to remain focused and professional despite not knowing and someone who is just making things up to flatter.
Fourth, keep away from buzzwords that your new found investor may not be aware; the industry is constantly changing its language to speak about technology, but there is no need to impose on your investor fancy jargon to impress them you know how to impress. Rather, stay on firm ground by giving your investor an honest presentation filled with the vocabulary both of you can relate.
To learn more about Burch’s creative vision and output, visit http://www.burchcreativecapital.com/