Why a Business Angel would invest in your project

For many young companies, the question of financing is a crucial point. Support from banks is becoming more and more difficult to obtain, and support from a business angel is often seen as a panacea. However, convincing investors is still difficult: out of 6,000 files presented to business angel networks each year, only 3% are funded. So what are the right attitudes to have to attract investors?

Propose a project that arouses the interest of business angels

Firstly, business angels invest only in companies with high potential, to accelerate their development and ultimately to gain a capital gain by reselling their shares. Innovation is therefore an important factor in attracting funding, whether it concerns technology, marketing or the business model. It is also necessary to contact the right network by finding out the specifics of the 85 groups of business angels listed by the France Angels association. Finally, it is an obligation to master your project sufficiently to be able to synthesize it orally.

">Demonstrate an excellent synthesis spirit

After approaching a network of business angels, it is time to present your project to professionals who are likely to finance it. This step is crucial: it must make it possible to make people want to invest and at the same time show the involvement of the project managers. The basis of the presentation is the “executive summary”, a summary that should be between two and ten pages long, comprising a five-year business plan, the company’s structure, its employees and a market study. You must be clear and concise, highlighting the initiatives already in place, the company’s first customers and the future partners that are envisaged. If the project attracts the attention of a network, a 30-minute plenary interview will be organized in front of interested investors. The business angels to whom the project will be presented must be able to assess its potential without getting bogged down in overly technical considerations. A clear presentation, made with humility and pedagogy, will be appreciated. Project managers must be open to a partnership and accept advice from more experienced entrepreneurs.

Rely on accurate and trustworthy elements

When presenting the project to business angels, it is not advisable to overestimate the company’s potential. Objective prospects, based on the company’s initial turnover, can be enough to convince investors if the interest in the project is visible. The entrepreneur must keep his feet on the ground and present concrete facts to the investors. It is thus interesting to be able to promote other possible financing and justify a future turnover capacity.

Do not neglect the human factor

Finally, a business angel is not a banker: he is above all a partner for an average period of 5 years. Its role is to support the company by facilitating contact with suppliers, potential partners or customers. This is a true collaboration, conditioned by the behavior of the project manager. An open mind, ability to work in a team and motivation are among the essential qualities that business angels look for.

For information, you can get information from the following three networks, which will give you good advice:

France Angels unites 72 networks in France.
France Angels is a founding member of the World Business Angels Association. France Angels is also a founding member of Business Angels Europe (BAE), the European association of the main national federations and associations of Business Angels in Europe.
France Angels at the start of 2017 are:
• 10,000 Business Angels connected since 2001
• 72 Business Angels Networks (regional networks, sector networks & school alumni, networks abroad) and individual Business Angels

Paris Business Angels
With almost 200 active investor and mentor members, Paris Business Angels is one of the leading business angel networks in France. Paris Business Angels mainly intervenes in the start-up phase, on funding rounds from €200K to €1M, alone or in co-investment. Although a generalist network, half of the investments of the members of network takes place digitally, 2/3 in technology companies in the broadest sense.

The Network of Women Business Angels (FBA)
Femmes Business Angels is the only network of female business angels in France and the leading network in Europe, bringing together more than a hundred women who personally invest in start-ups with potential and support them to help them advance and develop . FBA investors are interested in high-potential innovative companies from all sectors, in the early stage or in development, led by men or women and looking to raise between 100,000 euros and 1 million euros.
Since the creation of the network in 2003, more than 160 investments have been made in 120 start-ups from all sectors of the economy for an amount of more than 7 million euros.

Leave a Comment