According to a report by the Angel Capital Education Foundation (ACEF) the angel investment process is typically comprised of 4 steps. According to the ACEF report only between 1 and 4% of entrepreneurs that apply for angel investment funding will make it through the entire 4 stage process. That means that if you really want to stand a chance at securing angel investment you need to understand each of the 4 stages in detail. The 4 steps are as follows:
Stage 1 – Executive Summary – Typically the first stage of the angel investment process, also known as pre-screening, is simply an executive summary round. You will start by sending in your 2 page executive summary. This round determines whether or not you will have the opportunity to meet with your potential investors face-to-face. According to the ACEF, only 25% of applicants will make it through this round, so do not take round 1 lightly. Famous venture capitalist Guy Kawasaki said in his book, The Art of the Start, “Of the effort you put into write a business plan, 80 percent should go into the executive summary. These are the most important paragraphs of your organization’s existence.”Stage 2 – Investor Presentation – If you are lucky enough to make it to the second round you will typically have the opportunity to meet with your potential investors. You will be asked to prepare a short presentation, after which, the investor group will have an opportunity to grill you with questions. Going back to Guy Kawasaki again, make sure to follow his 10/20/30 rule. “A PowerPoint presentation should have ten slides, last no more than twenty minutes, and contain no font smaller than thirty points.” About 1 out of 3 will make it to the next round.
To read the full, original article click on this link: Four Steps To Raising Capital From Angel Investors | BizPlanIt: Business Plan Coach
Author: Adam Hoeksema
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