Startup-buzz Insight on approaching an angel investor
Funding plays a crucial part is growth of any startup. But approaching the investor again needs some homework. We had mentioned a few points that can guide.
The most difficult part about a startup is the ‘start up’.
The process of garnering seed money for investment to start with, is touted to be a grilling process. When one has exhausted their own funds, it rules out the option of bootstrapping. Hence, you have to present your idea out to the world. For the world to censure and judge in its own right. And then it may or may not lend funds. But it is a dueling, scrutinizing process which eventually does benefit a startup.
So how does one can approach an angel investor? What are prerequisites to ascertain prior to doing this? What does one prepare for?
Understand the investor – Prior to approaching the investor, one must understand the person. Whether or not the idea you are to table, will be understood by the person, is suitable for the person you are putting it forth to. Look for somebody who you know will not only lend you funds but will also be willing to offer his experience and inputs.
Have a team – A bankable team working toward the startup assists the process of garnering funds.
Business plan – Any investor would only like to invest his capital into an ambitious yet stable enterprise. Primarily one that ‘knows what it is doing’. Creating a business plan helps make better business decisions, take risks that are calculated and supported by data.
Foremost, understand yourself – At the commencement of the enterprise, there is very little that your product or your startup can do to speak for itself. Thus the entrepreneur must take charge here. Exhibit his prowess, take charge and lead the startup through a successful round of seed capital funding. For, in the beginning, as StartUp Buzz has expounded even earlier, they do not bank on the company but more on the man leading the enterprise.
- Understanding the investors point of view act as a helping hand for a startup to pitch itself.
- Various other factors do contribute in building up a reputation before a startup approach angle investor. They bank up various data points that would lead to a successful funding round.