Calling All Angels: What Not to Include in Your Funding Pitch
When pitching an angel investor, you should approach it as an opportunity to form a partnership rather than simply a means to an end.
If there’s one thing that puts investors off, it’s the feeling that they’re being turned to as a Plan B. And as Chris Sheehan, seed stage investor at CommonAngels, writes in a guest post for OnStartups, that can come across during a pitch in a number of different ways. Indicating that your company has received interest from VCs, but that you’re looking for funding needed to hit the milestones they’ve requested, for example, can be a red flag that indicates you’ve struck-out once and are turning to angels as a backup strategy. Worse, it may also suggest you’re treating them as merely a stepping-stone to the VC round and little else.
In the investor’s mind, not only does this point to high financing risk, it also isn’t exactly laying the foundation for a strong partnership moving forward. Sheehan encourages organizations to focus on one phase of the funding process at a time, and adjust their pitching strategies for each, specifically. For more on how not to pitch an angel investor, read Sheehan’s full post here.
Related Content from OpenView:
Now that you know what not to say to angel investors, read this post to find out what it is they’re really looking for in a pitch. And for a guide to making the best introduction possible, read this post from the OpenView Blog.
It’s not an easy decision, but most important ones in life aren’t.
We hope this framework makes planning during this uncertain time feel less like summoning a crystal ball and more like navigating with a map.
In this environment, it doesn’t matter if you’re the CEO of a startup or a well-established company—you’re going to have to make some difficult choices that will probably keep you up at night.