HUFFINGTON POST - Sep 24 - The Small Business
Association estimates there are ~250K angel investors in the USA. Angel
investors are drawn to Chicago's tech renaissance of app developers,
game developers, a large Drupal community, product developers for mobile
devices and much more. Most -- but not all -- startups are losing
money.
- Insist it's a $1 Billion Company
- Pretend You Don't Need Funding
- Miracle Marketing: Tell investors your marketing plan is to eventually create a video that will go viral
- Have an Unoriginal Idea in Need of Talent
- Pitch a dating site that sounds like 20 other dating site pitches in the last month
- Throw Away Success
- Take Credit for the Angel Tax Credit
How to Close an Investment
- Barrier to Entry: If you have a provisional patent, if you've developed proprietary information, if you have a sustainable competitive advantage, if you have previous industry experience, mention it right away
- Skin in the Game: If you've invested your own money, mention it. Explain how far your investment took you and why you need more funding to take your business to the next level
- Show Off: If you have a developed product, demonstrate it
- Have a Business Plan: No one expects you to have all the answers, but if you know the right questions, you're head and shoulders above other pitches
- Value Your Company: Explain how much of an investment you think you need and how much of the ownership of the company you're willing to give up.
by Janet Tavakoli
See full article at Huffington Post
This post also appears on SocialNetworkingWatch.
