Ask HN: Any advice for our first meeting with an angel investor?
7 comments
Don't be intimidated, take control of the meeting. Confidence reflects success, as a matter of fact, just think of any initial meeting with an important investor as a first date with a girl, stay cool, be charming and impress.
You may have just made it worse :)
I have not received from Angel Investors currently but I made a a couple pitches to some In Chicago and also received great advice from a highly respected investment banker in NYC. That being said make sure you have a clear path to revenue, it should be easy to understand. Secondly make sure your pro-forma and all your numbers make clear and logical sense. Your predictions cant be too conservative or too far fetched, use your best judgment. You wont receive any offers tomorrow so dont worry about negotiating. If they for some odd reason do make an offer, just ask to sleep on it.
Be enthusiastic and convincing. At the end of the day, you are selling. Good luck.
Be enthusiastic and convincing. At the end of the day, you are selling. Good luck.
Definitely work on telling your story. I think thats the most crucial part in creating an imagery of who your consumer audience is.
Also, have you been valued at a price yet? I would be slightly weary of negotiations over equity if you are in your micro stages. Just because it's easier to be valued higher over time. (I.e. you're easier to go from a value of 0 to 10 million then from 1 million to a 10 million valuation) If you're in your infant stages...I would stall it out for awhile, but that's just my 2 cents. =) hope that helps?
Also, have you been valued at a price yet? I would be slightly weary of negotiations over equity if you are in your micro stages. Just because it's easier to be valued higher over time. (I.e. you're easier to go from a value of 0 to 10 million then from 1 million to a 10 million valuation) If you're in your infant stages...I would stall it out for awhile, but that's just my 2 cents. =) hope that helps?
When I have a meeting I'm nervous about I always repeat in my mind "It's just a conversation". If you don't have trouble talking to normal (smart) people about your project then you shouldn't have any trouble talking to a good angel investor either. It's just a conversation.
Be clear on what you want. If you want funding, specifically ask for it.
In particular, ask them if they can/want to lead a funding round (that other angels participate in). If that's what you want.
We have our first meeting with an angel investor tomorrow, so I figured I would see what advice the HN community would offer on talking/negotiating/working with angels.
We are from the Midwest, so the tech startup environment is quite different. I'd be especially interested in hearing from any other Midwest tech startups that got angel funding.
Thanks in advance!