How to Convince Business Angels?

Your project is not the only one that deserves attention from Business Angels. Therefore, you need to put the odds on your side and show that you have the skills with your team to develop your business. In any case, in this delicate process, where the first chance often turns out to be the last, be well prepared. What are the reasons for pushing a Business Angel to support you in your business project? What are your interests in calling them? Here are a few tips.

If your chances of becoming one of the lucky ones are so small, it’s because of the massive demand that Business Angels networks have to deal with. You have the cards in your hands and the question is: What is the best way to show them?

The provision

To succeed in convincing them to invest in your project, you need to take into account two dimensions: financial and human.

Identify all the possibilities

Before calling Business Angels, do not forget that it is possible to finance yourself in various ways and in particular thanks to public or private organizations such as associations, BpiFrance or competitions. Do not neglect any of the available financing options, as if you get them, they will support your credibility with future investors.

Take care of your business plan

It is also imperative to take care of your business plan (summary and clarity of the development projections should be the keywords). Do you like to know where your money is going? Business Angels too. Do not forget to indicate the path you intend to go and for what purposes you intend to use the funds that will be allocated to you. Thus, you will put all the chances on your page during your oral presentation (which also requires synthetic properties in order to be able to convince quickly and effectively).

Prepare answers to questions from business angels

Similarly, prepare your answers to simple questions, especially those that involve maximum visibility into the viability of your business: What are you bringing new to the market? Is it your product itself that is innovative or, for example, your way of advancing from a marketing point of view? What is your ability to grow in the more or less long term? Do you want to be profitable within five years?

Be careful, this upstream work will not be enough. Arm yourself with concrete figures by, among other things, estimating the value of your company. This will allow investors to position themselves on the investment amount according to the proportion of capital they will own.

Finally, do not leave anything to chance and do a market research to make sure your project meets a need.

Human relations, the real interest in entrepreneurship

At this point, you might think everything is won, but that’s just an illusion! The approach you engage in represents a long-term task, and if the economic dimension proves to be crucial, human relationships very often take over. Ignoring it would greatly compromise the choice of your file, so be subtle!

If your only motivation is money, know that a Business Angel often invests first in an entrepreneur rather than a project. Several reasons can pressure them to invest and in particular to share their experiences / knowledge with more “young people” on projects that they themselves would not have time to deal with. Are you eager to learn from their experiences? Do you want to listen to these people who will act as mentors for you? To get the best out of your investors, you need to be able to bring out the best in yourself also by proving your abilities, your ability to execute the project …

Many qualities inherent in the project manager are often sought as positivity, fighting spirit … but also openness, the qualities of adaptation that you can demonstrate … that will not be insignificant in the eyes of your future potential shareholders.

Against all expectations, Business Angels often tend to abandon market access (as solid as it can be) in favor of the entrepreneur’s individual capabilities and qualities. And with good reason, business plans rarely go as planned, and the ability to adapt is often the key to success.

Modesty is a quality and a skill

Be careful not to overestimate the valuation of your business nor give yourself an oversized ego! Overestimating your business may result in your file being automatically rejected by certain investors. We must not forget that they also take a risk and that if this risk has little chance of being rewarded, they will tend to favor another file.

It is above all a matter of selling your project (in the same way that a salesperson sells his product) and taking care not to exceed the limits of reason. In case you overestimate the prospects for the development of your business, you do not risk convincing them …

Leave a Comment