Six Days to Success - Securing Angel Capital - Day 2
THE GATEKEEPERS
And how to get by them every time.
Every angel organization has a gatekeeper who sorts through applications for angel group consideration. The gatekeeper could be an intern, a staff member or an angel who has volunteered to pre-screen deals for the organization. What do you need to do to make sure your plan gets to the next step in the funding process? Here are some key tips for success in getting past the gatekeeper:
- Understand the Investment Criteria for the group to whom you are applying. This information can usually be found on the organization's website. If it is not clearly available, send an email or make a phone call asking for the criteria. The criteria may:
- describe specific verticals (business segments, e.g. software or life science) in which the group invest;
- specify a geographic region in which the group invest;
- describe the business stage of interest to the group;
- quantify the growth expectations of the group;
- specify the range of funding available from these angels.
Make sure your plan is safely within these criteria before submitting your application.
- Determine the steps in applying for funding. Most groups require a 2-page Executive Summary or a completed funding application for consideration and often describe the specific information required for submission. Submit your application in the form requested.
- Provide all the information requested by the angel organization and in sufficient detail for clarity in their processing.
- Be overly polite in all your early interactions with the gatekeeper. Avoid a bad first impression upon a gatekeeper who got up on the wrong side of the bed the morning your application arrived in his/her Inbox.
Here are some common mistakes made by entrepreneurs, which may result in your application being prematurely rejected. Avoid these and make it easy for the gatekeeper to pass your plan along to the next steps:
- An incomplete plan. Provide all the information requested. If the group requires five years of proforma financials, get to work and complete them.
- Submit a carefully crafted and neatly presented application (or Executive Summary). Messy work with misspellings and irregular formatting does not make a good impression.
- Make sure your application is balanced. Angels are looking for good investment opportunities. Avoid single-mindedly describing your product and/or your technology.
- Unless specifically requested, do not provide a full business plan, complete resumes, marketing materials or prototype products at the application state. These materials will not be reviewed by the gatekeeper and will be requested once you pass the initial hurdles, as the group begins to evaluate your business in detail.
Angel groups invest in 1 to 3% of the deals that apply for funding. Don’t assume your plan is a slam dunk. The gatekeeper is often looking at several applications at once. Follow these suggestions and make it easy for the gatekeeper to pass your plan along to the next step in the evaluation process.
Tomorrow’s installment is called:
“THE BIG MEETING #1 – Why a balanced presentation is critical. And why an overly strong emphasis on your product isn't enough and may even KILL the deal!"
Sincerely,
Bill Payne Buy “The Definitive Guide to
Raising Money from Angels” Now
Day 1 • Day 2 • Day 3 • Day 4 • Day 5 • Day 6
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