Some Questions That Angel Investors Will Ask An Entrepreneur

opportunity for an trepreur to prest to an angel investor group is an
honor, since process of obtaining angel capital
is quite competitive. It is to note that an trepreur is couraged
to construct ir pitch in a simple, yet effective manner. Too much or too little
detail can oft lead to confused and uninterested listers.

In addition, verbal prestation should be repeatedly rehearsed, since each
review will greatly improve one’s verbal and prestation skills. Repetitive practice
in front of an audice is be of constructive feedback from ors.
array of opinions and ide from eager listers is very valuable and should
courage entrepreneur to modify his/her pitch accordingly.

most intimidating part of meeting with angel investors is answering ir s
in a well-devised and concise manner. While some trepreurs may accomplish this
with ee, ors may simply experice anxiety, answering prested s
with hesitation and doubt. Every new business owner, who is seeking angel capital,
should properly prepare for momt wh y meet with angel investors to avoid
rejection. Here are some s that entrepreneur may counter:

1. Tell us about yourself and your company.
trepreur should give a brief introduction about him/herself, including credtials
and education, and or pertint back information in ir oping. A geral
idea of company should th be mtioned, followed by company objectives,
well differt products and services offered.

2. Who are your major competitors, and what makes your products and services
unique?


Entrepreneurs should be prepared to mtion any market opposition and how ir
products and services will give business competitive edge. Since market
competition can be reltless, it is always a good idea to provide solid examples.

3. Who are your targeted customers, and how have y responded to your prototype?


Angel investors are always curious of demographical information, including targeted
market and consumer be new business will appeal to. By creating a prototype
of business idea(s) and welcoming consumer response, trepreur can furr
refine his/her prototype according to customer feedback. It may take multiple revisions
before an actual product is produced; refore, it will be wise for trepreur
to recruit pottial customers to support his/her sales and ev use m referces
to courage ir deal with angel investors.

4. What is your marketing for your products and services?

This includes an entrepreneur’s approach in promoting business through advertisemts,
internet marketing and promotions, and public relations to incree sales and achieve
a competitive advantage. Marketing can be quite costly, so it is extremely
for trepreur to include this estimated price in plan.

. How much angel capital are you seeking, and how will this investmt amount
be distributed?


It is always a good idea for trepreurs to provide an estimate of amount
of angel capital y are seeking for ir startup. By presting angel investor
group with outlines and predictions, entrepreneur will gain credibility
in conducting ir own due diligce ( research) for ir company. More
impressive is rough draft or summary of how angel investor capital will
be dispersed (i.e. rt, utilities, technologies, salaries, etc.)

6. What time frame do you expect invested money to lt?

This bically refers to hypotical period of time it may take for anticipated
ch flow to appear. This is also calculated schedule of time that is considered
to be “safe period” before additional capital may be needed. Typically, it will
take an average of one year or more for any new business to see revue; refore,
it is for entrepreneur to consider all possible expses before determining
this amount.

7. What is my stake in company and my ROI?

Since every prospective angel investor wants to have an idea of ir perctage
stake in a company, well ir rate of return, it is crucial that this figure
be prested and negotiated. Oft times, angel investors expect a certain perctage
of ownership in a company with a large return on investmt be of risk
sociated with fate of new businesses. entrepreneur should be aware of
such demands and be prepared to prest such values.

8. What will happ next if company fails?

Angel investors are known for ir risky business deals and oft have a well-planned
exit for each of ir investmts. re is always possibility ir
invested company may not be successful anticipated; refore, y usually
prepare a strategic plan in ir agreemt. y may choose to exit company
after a certain period of time through IPO, merger, acquisition, or sell-out.
trepreur can ev offer ir angel investor some protection by providing a
secured position on sets and subordinating equity in ce future liquidation
occurs.

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