It's All in How You Pitch It - Making Your Pitch to Angel Investors

Share Article

Raising capital from Angel investors can be a challenge, especially when you are given just 15 minutes to distill your entire business plan into a compelling presentation. What information is critical? How much detail is enough, or too much? What do angel investors consider when evaluating an investment opportunity?

Presenting your business investment idea to prospective investors is a process that requires sincere effort, intelligent direction and skillful execution. Throughout this past year, the Northern Ontario Enterprise Gateway (NOEG) has been hosting entrepreneur sessions that coach companies to become investor-ready and bring the best deals to northern angel investors. NOEG has established a set of best practices regarding the presentations that resonate with the angel investor community. In NOEG's up-coming two-day session, the best practices are shared with entrepreneurs in an interactive workshop where they can use the skills they have learned to actually pitch their business to some of the north's most successful angel investors. Without mentoring entrepreneurs will learn these lessons the hard way so, it's a good idea to attend these sessions first to get the inside information.

"The net sum value of a killer technology, breakthrough product or compelling service is zero - unless you can demonstrate how you will turn it into a profitable business within the next three-to-five years in a 15-minute presentation," says W. Daniel Mothersill, President of the National Angel Organization and the lead mentor for the NOEG sessions.

The most critical element when presenting to investors is to position your company as The Solution to a big pain in the overall market. The tragedy is that without coaching or mentoring, most business presentations can simply be categorized as trite, trivial and indifferent. Too often they consist of statements diluted with techno-speak and heavily spiced jargon. Without a concise and verifiable presentation, they are quickly turned down by angel investors. Here are only a few of the key elements that an entrepreneur needs to master before making their pitch to investors:

Your Elevator Pitch: What real-market pain does your technology/product solve? The Market: Angels want proof that verify your assertions. Solid market facts come in the form of thorough market research about your industry trends, growth rates, unmet needs and your potential customers. The Product/Technology, science or service description: You never want to give away the secret sauce to the technology or product you are presenting but you must be able to prove your technology has a distinct advantage over the competition. You must be able to describe what aspects of the technology or product are patented or in patent pending status. Your Management Team: For most businesses, the future of the organization is directly tied to the talents, experience, and passion the management team brings to translating innovative ideas into an enduring business. For that reason, at least 60 % of all financing decisions are made on the strength of the management team.

The overall impression that should be covered in the pitch is that the entrepreneur has true potential for market domination in the niche it is addressing, has created something that is unique and in high demand, has developed the offering to the point where it can be easily commercialized (if it isn't already), and that the founder understands the competition, is prepared to meet the demands, and has or is acquiring a complete management team to propel a thriving sustainable business.

The Northern Ontario Enterprise Gateway acts as a catalyst to improve the flow of investment capital and management expertise into high-growth Northern Ontario companies. NOEG accomplishes this by linking Northern Ontario investors and entrepreneurs. NOEG programs are funded by Fednor. To find out more go to http://www.noeg.ca.

Media Contact:
Dawn Larsen
1-705-969-5884

###

Share article on social media or email:

View article via:

Pdf Print