While Angel Investors provide 90% of the seed money that helps startups get off the ground, they are looking for a BIG payoff (if you look at the slide at the left, it does NOT mean that Brian left the room and came back 30 times). In fact, Brian cited that only about 1 in 40 companies that go to Angels get an investment (as compared to 1 in 400 who present to VCs). The next question is: what will make YOU appeal to an Angel?
- You are in control. Be confident, and ask for what you want.
- Get a good lawyer. Especially when your friends and family are investing in your early-stage company. You want to give them good terms so they don't get screwed later.
- Know your business inside and out. (For example, would you invest in an air filter company that didn't know what HEPA means? For those of us who didn't know, HEPA means High-Efficiency Particulate Air.)
If you are getting ready to launch your company, you'll also want to check out the new company created by Brian and Trace Cohen, Launch.it. It's a free newsroom for you to publish your story.
And if you're not ready to launch yet but you need funding from an Angel Investor, then let us remind you that there's always more advice you can get from Brian's book!