Bill Payne has been enabling entrepreneurs through Angel Investing since before it was cool.

Six Days to Success - Securing Angel Capital - Day 4

Investors fund management teams and the entrepreneur is the most critical member of the team.  What personal characteristics do investors seek in fundable entrepreneurs?  Here is the short list:

The entrepreneur must:

• Have experience
• In the vertical of the business plan
• In managing people
• Prove leadership – the ability to recruit and retain a great management team.
• Demonstrate coach-ability – All first-time entrepreneurs are more successful when they surround themselves with qualified advisors and then listen to them!
• Exude passion, integrity, a great work ethic and a “can do” attitude.

The management team must have:

• Balance – most or all positions covered with position-critical skills.
• Experience in working together as team.
• Confidence in their own skills but be humble enough to ask for help.

A cocky, know-it-all attitude does not cut-it in a room full of investors (each of whom likely has more executive and leadership experience than the applicant entrepreneur).  Investors expect a well-prepared entrepreneur, but do not expect entrepreneurs to have answers to all questions.  It is much better for entrepreneurs to say “I don’t know” than to make up an answer, only to find later that the answer was wrong.  Integrity and honesty are critical.  One fumble is usually sufficient for angels to walk away.  Angels see many exciting investment opportunities, and choose to invest in trustworthy entrepreneurs.

The quality of plan presentation is an important measure of the entrepreneur.  Unprepared, ill-at-ease entrepreneur presenters create concerns among candidate investors regarding of the entrepreneur’s skill sets in recruiting a management team or engaging with customers.  Entrepreneurs must be confident, self-assured salespersons:  selling investors, selling potential employees and selling the vision of the business and the utility of the product.  Total familiarity with all aspects of the plan - including the financials, the need for capital, and the milestones that can be met with the capital to be raised - is critical to the success of entrepreneurs in pitching angel investors.

Tomorrow’s installment is called:

 “THE BIG MEETING #3 – Defining Your Exit Strategy. Without it, there is no Entrance. "

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