Bay of Angels: How to Catch an Investment

Bay Area angel investing

Think back to the time when parents bought berry ice cream with a condition of good behavior. So they were angel investors because they didn’t know for sure if their investment would pay off.

Let’s get back to the serious financial talk.

Companies like Intel, Microsoft and Amazon started with private investments. Therefore, startups all over the world dream of getting under the wing of such businessmen. It is worth immediately separating the two concepts of venture capital funds and angel investors. The latter are entrepreneurs with rich experience in business and some narrow sphere, who have earned a certain capital and want to earn money on the development of new companies in the field of information technology.

Of course, the concept itself originated in the 19th century, where the wealthy bourgeoisie and the aristocracy supported scientists and their inventions. But the image that we see now is “blamed” for Silicon Valley and the development of IT.

In this article, we will tell you exactly about angel investors Bay Area.

So why do startups dream of such patronage? Only startup companies can get much more advantages in such cooperation.

To start with, an angel investor is a person, and you can build a certain trusting communication process with him. This means that you can “infect” him with your idea or project, even if you don’t have specific figures, you haven’t registered the company, or you have not yet received a patent on the intellectual property.

You raise money even before the launch of the product, before the first profit. Most of them are former top managers, university professors, and business owners aged 45 and above.

Angel investors put their own funds; they have not only the financial capacity, but also the managerial and entrepreneurial experience. Accordingly, in addition to the investment you get accumulated contacts and knowledge, assistance in organizing business processes. And let’s not forget that often angel investors team up to increase the amount of investment and thus diversify their own investment package.

Ratio of investments by sectors:

Angel investment ratio by sectors

Top 6 Angel Investors Bay Area

Speaking about investments and IT, we immediately imagine Silicon Valley and Stanford University as a cradle of startups and ambitious projects. Then let’s look at a list of the most famous angel investors.

1. #Angels

A fast-growing company that can invest from $50,000. Holds events to find new startups.

2. 500 Startups

Most of the representatives of this investment group are from the field of education and communications. So they not only provide funds, but also teach aspiring entrepreneurs the basics of marketing, attracting investment and customers, and financial accounting

3. Astia Angels

These angels specialize in helping startups at the beginning of their journey. To get an investment from this company, you will have to go through a complicated vetting process. But it is worth it, because you will get money and serious experts in management and business organization.

4. Band of Angels

If you have a high-tech startup, these are the investors you need. You will feel comfortable conveying the idea of your project, because you will speak the same language. You won’t have to search for an explanation of complex terms.

5. Partners Resolute

If you are looking for an investor whose portfolio includes SpaceX, you are on the right track. But so are the expectations for your project. Prepare a serious financial plan with justification for the numbers. This is good for those who want to change the world.

6. Keiretsu Forum

You can expect to invest even $50,000 in your technology startup, which means even a small project will get attention.

This is only a list of the main investment groups. You can get acquainted with the possible partners at specially organized meetings. After all, the success of your startup most often depends on networking, the ability to communicate with many people. But you’re not the only one looking to impress angel investors. Let’s discuss how to leave the right first impression.

How to Snag Business Angel

Angel investors aren’t just interested in IT startups. Technology is bursting into every field of business – real estate, medicine, education, music, and the movie industry. We all know the profit of streaming platforms. Therefore, the chance of attracting investment in a project increases.

Of course, everyone wants a miracle. For example, to meet the same angel in a coffee shop in Los Altos, in casual conversation to share an idea and get money. But the reality is, these people are entrepreneurs. They know how to count money. Having a business plan, understanding financial planning and organization is important to them.

As a founder, you must not only know how to implement the idea, but also how to attract customers.

Angel investors criteria

To begin with, check your project according to the following criteria:

  • The uniqueness of the idea
  • Potential growth
  • High potential return on investment
  • High qualifications of the managers.
  • Clarity of exit from the business.

But let’s repeat and recall that the angel investor is a person. To make a decision, he wants to get to know the founder better, to share his values, to see him as the entrepreneur in whom he will believe and invest his money. The communication process itself is significant, how much you can open yourself up, demonstrate your dreams, aspirations, how you are burning with your project, believe in it, and make a reasonable assessment.

Now let’s move on to the presentation of your startup. There are several essential tips:

  • Make a pitch for a specific investor. Before the meeting, you gather information and prepare a presentation just for this businessperson.
  • Understand the topic of your product. You have to research all aspects in detail to answer questions. When the founder is easy to talk to and with interest, parsing information, it causes confidence on the part of investors.
  • Build your arguments competently. Your presentation must be logical. All figures must be accurate, statistics must be correct, analysis must be carried out. Think in advance about possible difficulties and weaknesses and show how they can be solved.
  • Conduct a training presentation on different groups of people at least 20 times, before the main presentation to angel investors. By doing this, you will be able to identify the unfinished parts and weak evidence.

From these points, you can understand what best not to do. But still, here is a list of common mistakes.

Top 5 Mistakes of your Pitch Deck

1. Breaking timing

Investors value their time, your speech should be dynamic, precisely timed. You have to stay within the given limits, and to do this you need to rehearse.

2. Over-saturation of the presentation

Large texts on the slides are difficult to understand. There should be clearness and clarity.  Less text on slides, more meaning. You can increase the number of pages, rather than making the audience read long messages.

4. Dry facts

It’s about losing the audience’s attention again. Behind every startup there is a story, prepare a speech in the spirit of storytelling.

5. Poor design

The presentation design should match the level of your startup, the amount of investment requested. Visually demonstrated data in the form of graphs, charts and other elements are easier to comprehend. If you don’t have the necessary skills, ask a knowledgeable professional.

6. Lack of information about the team

Every business is about people. Your partners need to know who will implement the project. When there is a professional team formed, it increases the chances of success of the product and improves the loyalty of angel investors.

Many private investors are ready to give you money to implement the idea. Only if you can convince them of the startup’s viability and profitability. Be confident in yourself, pump up your skills and form a reliable team.

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