Business Angel Capital
Secure Business Angel Capital: Service Description
This service is part of our Raise Capital program. We help you get matched with angel investors using our AI system. Our 155K angels network is a global network of high-profile accredited angel investors covering a wide range of industries, stages, and countries. We don’t send mass or cold emails to the investors. We introduce you to angel investors through warm introductions. We also provide legal advice on how to negotiate with angel investors and what funding terms they should negotiate about. We also help startups in closing the investment deal on the right terms for both parties.
Secure Business Angel Capital: Goals
- Finding the right investors for your startup
- Reaching investors through warm introductions
- Contacting and following up with angels by our team
- Introducing your startup to angels
Book a Meeting
- Let’s discuss how we can help you raise capital from angel investors
1. Get Business Angel Capital
Angel investors are the most common and preferable funding source among startups from all stages as angel investors don’t only help startups financially, but also provide business expertise and advice.
Angel investors contribute to the overall business growth of the startup. This is why even mature businesses tend to seek angel capital as part of their growth capital for growth and expansion.
Angel capital is often seen as a key ingredient for the success of entrepreneurs, as it allows them to grow rapidly and expand their business. It can come from private individuals, venture capitalists, or even groups of individuals, who are willing to invest in early-stage companies in order to help them reach their full potential. This support can be invaluable not only for the company itself, but also for the individual entrepreneurs involved, as it gives them the opportunity to build a valuable network and go forward in the business world
Some angels invest in early-stage startups that are looking for early funding, while others focus on later-stage or growth-stage investments. Some angels invest in companies based in their investment criteria, while others look for opportunities all over the globe. Some angels invest in companies they know and trust, while others take a more selective approach. Regardless of the approach, angel investors are typically passionate about entrepreneurship and want to see businesses succeed.
Angel investors typically have a deep understanding of the business and sector they’re investing in. They also have access to unique networks that can help startups reach new heights.
Finding the right angel investors for your startup can be very challenging due to lack of resources and connections. Some angel investors have their own investment criteria. Some of them invest only in certain industries, stages and countries. Your own social network (no matter how big it is) is limited. On the other hand, contacting angel investors randomly will not produce any good results. You have to select the right angel investors based on their interests, which might not be clear from their profiles, as they don’t state all of their investments there. Even if you try platforms such as Crunchbase or others, then you can’t always find all the details. Reported success of raising capital from entrepreneurs on their own is less than 0.1%!
We help you find angel investors for your startup by matching you with angel investors based on your startup’s stage, industry, and location. We also take into account the investor’s investment history. We reach out to angel investors through warm introductions (through another angel investor who will be introducing your startup to the target angel investor). We also work on reviewing, and improving your pitching documents (pitch deck, business plan, and financial model) to make sure they are ready to be pitched to angel investors.
How we help you find Angel Investors
Part of our angel capital service includes identifying the right amount to be raised and equity to give up through our funding plan service. We also help you value your startup in order to define the right amount of equity you need to give up through our startup valuation service. We support startups through the negotiating phase with angel investors and help them close the deal through our negotiation with angel investors service.
Quick Tip
Try to check the profile of the angel investor before contacting them. It’s important not to contact angel investors who have invested in competitor startups! The last thing you want is to expose your idea to the risk of being stolen or replicated.
2. Plan for securing business angel capital
If you’re looking to raise money from angel investors, you’ll need a plan. Here are five tips for planning your fundraising effort:
1. Know Your Numbers
Before you can even think about fundraising, you first need to know your business’s financial position. Start by compiling a comprehensive financial report that includes your revenues, expenses, and cash flow. This will give you a good idea of where your business is financially and what improvements are needed.
2. Build a Strong Case for Investing
Once you have your numbers in hand, it’s time to build a strong case for angel investors. Start by creating a pitch deck that highlights your business’s strengths and explains how the money you’re asking for will be used. Make sure to include detailed explanations of your budget and revenue projections.
3. Craft an Elevator Pitch
Once you’ve explained your business in detail, it’s time to give your investors a sneak peak of what they can expect. That means creating an “elevator pitch” that will quickly bring your business idea to life. Aim for a 30-second presentation that will leave Investors eager to learn more.
4. Get Prepared to Interview
Once you’ve got the funding you need, it’s time to start recruiting angel investors. Start by reaching out to friends and family members who might be interested in investing in your business. You can also join AngelList, a startup angel investment platform, and start publishing information about your company.
5. Stay Positive and Motivated
No matter how successful your fundraising effort may be, don’t get discouraged. Remember: angel investors are highly motivated individuals who are looking for businesses with high potentials. Stay positive and keep moving forward!
Before approaching angel investors, you need to create a fundraising strategy in order to organize your fundraising efforts. Approaching angel investors with a clear funding roadmap doesn’t only show how serious you are to angel investors, but it is also good for setting your priorities straight and having clear timeframes for each milestone that needs to be achieved during the funding round. We help you make a fundraising strategy through our funding plan service. We work on identifying the right amount to be raised and the equity you need to give up to investors through putting a fair valuation of the startup. We work on making a detailed funding plan that contains clear milestones for each funding round. We advise startups on how much they need to raise and how they should break the amount in order to increase the chances of raising capital and decrease the amount of equity to give to investors in each round. In addition to helping startups in identifying a reasonable amount to be raised, we also advise startups on how it is likely to raise the amount and how much it will take to raise it.
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Quick Tip
A rule of thumb is to dilute less than 15% on each round of funding so that the founders will still own the majority of the startup even after three to four rounds of funding. There’s an exception to this rule at an early stage of funding when the risks are high and maybe you need to give away up to %20 equity to an angel investor.
3. Value your startup for getiing business angel capital
There are three main methods used to value a startup: market, net present value (NPV), and internal rate of return (IRR).
Market valuation is based on the assumption that the startup will be worth exactly what is paid for it. This is the most common method used to value a startup, and it is also the most difficult to calculate. The most accurate way to determine a startup’s market value is to do an initial public offering (IPO). However, many startups do not go public, and therefore market valuation is not always an accurate indicator of a startup’s true worth.
Net present value (NPV) is based on the idea that a future cash flow from a startup is more valuable than the cash flow that would be generated if it were sold immediately. NPV can be calculated using a variety of methods, but the most common is the payback period method. This method assumes that the startup will generate cash flow for investors over a certain period of time, and then subtracts the initial investment amount from that total to get the NPV.
IRR is a more complicated method than NPV and is used when there is no specific calculation that can be done with NPV. IRR calculations are based on the assumption that a startup will continue to generate cash flow over time, and then the return on investment (ROI) is calculated using that information.
All three methods have their own advantages and disadvantages. Market valuation is the easiest to calculate, but it is also the most inaccurate. Net present value is the most accurate but may not be as valuable to investors because it does not take into account the risk involved with a startup. Internal rate of return is the most complicated but may be the most valuable to investors because it takes into account both the risks and rewards associated with a startup.
It is highly important to identify the right valuation of your startup in order to know how much equity you need to give up to investors. We work on putting a fair valuation on your startup by applying the right valuation method that fits your stage through our startup valuation service. We also compare your startup to other startups that share similar business models, stages, and industries. We also take into account your revenue and cash flow in the valuation process.
Case Study
A startup that joined our Raise Capital program for its seed round of funding was looking to raise $500k. We have reviewed the financial operating model and we have challenged many of the financial assumptions in it. After discussing the funding plan with the team, it was clear that they were planning to raise too much money. We discussed with the team that at such an early stage they don’t need the whole amount for 18 months to run the company. They would only need what is essential to validate the model and scalability of the business. After discussions, the team agreed to lower the amount to be raised to two options: $120k and $180k, and then followed up with another round of funding within a year. This strategy helped the startup in securing enough money more easily and so move forward more quickly.