How to succeed with angel investors
Working in London is exciting – a vibrant city that encourages diversity and has a constant buzz. It’s not surprising to see so many start-ups, entrepreneurs and investors. This week we were invited to a Business Funding Show, an evening workshop with a focus on angel investment; an event full of innovative ideas, business pitches, and shared insights.
So who are these business angels?
Put it simply, they are people who invest money to support businesses – typically, up to £250k. Business angels tend to diversify, especially if they are not sufficiently familiar with the founders. But it is not just about capital as Arina Osiyannaya, Managing Director of ‘The Business Funding Show’ told the entrepreneurs at the workshop: “Angels are not only when you need money! You want someone who may share expertise, knowledge and contacts”.
Sherlock your investors
The event started with a fascinating talk about the psychology of investment and understanding the investor mindset, followed by presentations from angels who explained what they are looking for in an investment pitch.
Some of the key aspects included:
• Sherlock your investors: map the human in their head and get inside their world. Research their investment history, success stories and news. Anything you could find. And show the angles why you are a good fit.
• Prove your concept: you have heard it before, but ideas are only 10% of the challenge. If a moron executes a great idea, it may go pear shape. Show investors that your ideas solve a real problem and that your proposition is viable and credible. Remember it is not just about ideas, or their execution, but about proving that you can unlock real value.
• Reduce risk, increase returns: you must have a strong business model, clear go to market plan, and a credible team. An ambitious exit with strong multiples is also a must. Yes, angels look for high returns and low risks…!
• Tell a story: investors need to feel, hear and see the proposition. Leave all the boring details and laborious decks aside. Create an experience and a narrative that resonates with angels.
Matching Entrepreneurs and Investors
We were recently involved in the redesign of qodeo, a private equity platform for investors and entrepreneurs. qodeo’s CEO, Simon Glass, was one of the presenters and spoke about how qodeo is transforming the way entrepreneurs find the right investors. qodeo already tracks and profiles more than 1,500 venture capital firms, over 17k growth businesses and more than £500b of private equity funds.
Using clever matching algorithms and insights from a global research programme, qodeo’s investment matching engine reduces the time, effort and cost involved in finding the right investors. Simon shared with the audience a few of the new screens. We believe that the new design is clear, compelling, and wonderful to use. Judging by the number of entrepreneurs that wanted to be included in the next release, it was a very successful demo indeed.
Our work at T&T is based on a human-centred ethos that combines holistic human research, proof-of-concept and prototyping, testing and data modeling to reduce risks and create real value. Sounds familiar?
Where is the exit? I want to leave now.
Entrepreneurs often speak about fantastic exists and the media mostly covers success stories. We all work with partial and biased data. Most of the data is hidden and inaccessible. It is called private equity for a reason. Everything is very private. So, it’s great that in London we have so many events that allow people to candidly share their experiences.
If you are already an entrepreneur, good luck with your next exit. I guess it is time now for my own exit from this blog post.
I am always keen to discuss new ideas, innovation, digital transformation and entrepreneurship. If you would like to have a chat, please contact me at firstname.lastname@example.org