Angel Investor Tips

Angel Investor Tips 2001:

  • The New Old Economy: Back to 'Bootstrapping'!
  • What should be in my Business Plan?
  • What is my Start Up Worth?
  • Angel Investment Criteria
  • Your Presentation to Investors

2001: The New Old Economy

2001: The New Old Economy:

Back to 'Bootstrapping'!
The New Economy isn't so new any more... the paradigm has shifted for starting businesses from "here's my business plan, where is my money? (Pre- April 2000) to "here is my product and my customers, can you help me with some money to expand my business?" (January 2001)

Valuing Start Ups

People estimate that there are 3,000 to 4,000 start ups in Chicago alone each year.

Your business is worth what anyone will pay for it. Typically, at the good business plan with "two guys and a garage" usually has a pre-money valuation of $1M to $2M. Any added value needs to be built from here typically in terms of excellent management, the market and the progress on your solution.

Angel Criteria

The first start in funding your business is with the three F's of source capital for the seed round: FOUNDER, FAMILY, and FRIENDS. As the founder, you need to put most of your money and time toward making this venture a success. Any outside investor will insist on this. You should next go to family and friends. There isn't anyone that will value your business plan more than they will. Just remember that you can make money for them or lose it all! Ask yourself if you could face these people if your venture failed.

Investor Presentation

What should be in your Presentation to Investors?

You got the right referral and sent the executive summary. The investor has agreed to meet with you. What do you say? How do you say it in 30 minutes and 10 slides?

Jumping In

SITUATION

Schmoozing Tips

The Essential Laws of Networking in the New Economy

by Daniel Limbach, the SchmoozeMonger

1. Never go anywhere without business cards