Have you ever wondered how to get an angel investor to invest in your business? What about the best way to approach them for funding? What should you say and what should you really avoid saying like the plague?

You’re not alone! Funding is often the most challenging and daunting aspect of an entrepreneur’s journey, and many first-time entrepreneurs fail because they don’t know how to raise investment.

There are several types of funding that can be used to start a business, such as bank loans and venture capital, but one of the most common ways to fund startups is by leveraging the power of private investors. Whilst we don’t often hear about the ordinary investor, this space has seen particularly strong growth through the pandemic; 2021 saw $3.6B invested, up from $2.7B pre-pandemic (Source: Pitchbook) with no indication of a slow-down.

Angel investors are often high-net-worth individuals or groups who have exited their own successful business and are in a position to invest their own money into funding an innovative high-risk venture, which makes them ideally placed to not only offer investment but also credibility and advice to the startup; supporting growth and opening doors. Attracting investment from an Angel isn’t an exact science, however there are 5 proven tips to raise your game in 2022:

1) Be a Game Changer – it’s not enough to have a good idea that delivers a small improvement to an existing product/service. You need to be able to solve a burning problem in a unique and innovative way.

2) Have A Clear Business Model – offer a vision of the concept and a strategy that will enable you to enter the market, reach your customers, prevent fast followers from copying your idea and provides a sustainable financial model.

3) Know Your Numbers – ensure your financial model showcases the opportunity and reinforces the growth and revenue assumptions that you are making.

4) Pitch Your Story – it’s tempting for many entrepreneurs to jump straight into the solution they provide, instead of clearly presenting the size of the problem and opportunity and then the ultimate solution. Be clear, concise and to the point in your pitch.

5) A Strong Team – in the early stages an investor is taking a bet on the strength and skills of the team. Is there the right mix of personalities, knowledge, and network – do they believe you and your team have what it takes to make an impact, to go the course when it gets tough?

Want to raise money for your startup? Let’s connect – at Suss Ventures we’ve got you covered.