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.The Don'ts
- 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.
This post also appears on SocialNetworkingWatch.