Contrary to my last post, Investor Turn-Offs, which talked about which things to avoid when pitching to investors, there are also some things that should come through.
What are angel investors looking for?
Characteristics of the entrepreneur
What characteristics shine through your presentation and answers? These are the top characteristics angels look for:
Integrity, passion, startup experience, domain expertise, functional skills, leadership, commitment, visions, pragmatism, flexibility, and control.
Characteristics of the venture
The same as above but this time applied to your startup. What are characteristics of your startup can you portray in your pitch?
Team, business model, traction, customer acquisition, scalability, defensibility, capital efficiency, churn, time to breakeven, and exit strategy
Characteristics of the market
This demonstrates your knowledge and a clear explanation of the market you’re entering. Since this is what you’re getting into, you need to know the numbers and the trends:
Size, growth, concentration, geography, demographics, competition, channels, regulatory environment, technological developments, and adjacent markets
Characteristics of the deal
This should be crystal clear in your presentation. Your angel investors know what they’re doing here and they’ll want you, as a potential investment, to know the exact numbers of what it is you’re offering:
Valuation, size of raise, amount of investment, form of investment, liquidation waterfall, option pool, board composition, anti-dilution rights, protective provisions, and founder vesting