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.
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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.