Over the years many (many) people have asked me how to pitch to an Angel Investor for funding. To me it is very simple. As Tom Cruise said “Show me the MONEY,” Simply put an Angel Investor wants a clear, crisp and compelling path to how they are going to make much more money in a risky investment than they could on a very less risky Index Fund.
You say “What does an Angel Investor look for in that path?” Again simple. They look at five areas. They first look for a strong and experienced Management team with significant passion other than money, that they can trust in business as the world changes, that are optimistic they can succeed and also have character and integrity that others will follow. They secondly look for a strong and growing business opportunity in a growing industry and usually at least US $0.5B. Third, they look for a strong, relatively predictable business strategy that is practical and methodical so they can get their investment back in a defined period of time with significant profit. Fourth, they look to see if they believe the product/service’s value to the business’s customer is significant and Fifth, they look for a significant return on their investment by looking at a strong investment return.
You need to cover all these five areas in addition to talking in simple terms what the product is upfront. For example something like “We design, market, install and service Hospital Information Management Systems.” “The problem we solve is being more efficient while providing better quality of care for your family and mine” Again, very clear, crisp and compelling.
Then let the Angel Investor ask the questions they are most interested in.