What angels might expect from you

Following up on our latest post, here’s another set of tips by Suzanne Biegel, Angel Investor and Entrepreneur, previously host on Make a Wave, our growth readiness programme.

What do you wish entrepreneurs have prepared, by the time they come to you?

Knowledge/Skills I’d like to feel you are clear on what you know vs what you don’t yet know. I want to hear about what you want to learn in the next year, to move your business forward.

Money How far will my capital take your business, how much of a cushion/buffer do you need.

Valuation Is your valuation rational, does it fit with the amount I want to put in?

Impact Are you clear on the social and environmental impact you would be in position to make if you grow.

Marketability I’d like to see a service/product that has been validated by paying customers.

Team Can the entrepreneurs tell me about hard decisions they had to make regarding their team, and how they made them. This counts as well for business choices.

Due Diligence Pack Entrepreneurs should know what investors are going to ask them, or look for. Entrepreneurs really need to be in position to provide answers or most answers.

And I want to see good references!

Angels who have burnt their wings investing with their heart rather than with their head, really want to see the business value of your proposition.

You might have a great story every one will fall in love with, a great cause to fight for, a fabulous brand, but if you haven’t worked out the logistics to bring your product to market or planned ahead to bring enough capital to make all this happen, you will not be in position to move forward. In fact, you might even get propositions to expand and scale rapidly but, by not having the logistics planned ahead, or the skills in your team/board to move forward, this will be the kiss of death, and the potential end of your business.
So as an Angel, I want to hear about a solid USP, I want to have the evidence that customers or buyers feel they are missing something, and they they would want your product/service. I want to see the evidence that you are building your business first, rather than working only on the story!
Specifically for entrepreneurs with family or caring responsibility, at the end of the day, I want to know that you can be available when needed. So is your private logistics in order?

What are typical blinders you come across among entrepreneurs? 

“You are so in love with your own story that you cannot hear input.”

“You are so in love with your own idea for a product/service but haven’t validated it with the market”

“You haven’t done your homework on how the business makes money”

“Have you really figured out your social impact AND is this the best use of money to get to that outcome?”

“Have you really thought smartly about doing this on your own vs. partnering up for it?”

“Who is handling the day to day blocking and tackling - billing/invoicing, collecting, managing financials, managing inventory, keeping YOU reigned in?”

“Who is asking you hard questions and there for you when things get rough?

“Do you have the right people in your world who will challenge you and support you?”

Read Suzanne’s bio at the end of this blog.