Five Ways To Win Over An Angel
Once you’ve found potential angels, how do you win them over? Angels, like venture capitalists, want to see the following:
Strong management: Does your management team have a track record of success and experience?
Proprietary strength: Will your product or service grab consumers’ attention.
Market potential: Higher market potential translates to more opportunities for the investor.
Return on investment: Most angels expect a return of 20%-25% over five years. However, they may accept a lower rate of return if your business has a lower risk.
Spell out the terms of the investment: This is no place for amateurs—seek out a lawyer with extensive experience in drawing up investment agreements.
Source: U.S. Small Business Administration (SBA)