At this point you should have already found your angel investor. Because of the nature of angel investors, the two of you probably already have a relationship to some extent, or at least you've met on one or more occasions. Because the level of the relationship varies greatly from angel to angel, however, there are a few things you need to consider before scheduling the actual pitch meeting.
Don't pitch the angel until your relationship has reached a comfortable and trusting level. You'll also want to do it at a time when you think the angel will be receptive to the request. If the angel is a friend or family member, try to avoid times of major life change, like a death, a birth or a marriage for example. The angel will likely have other things on his or her mind. If the angel is not a close friend or family member, then you may not be aware of such personal events. You may, however, be aware of other recent investments that the angel has made. If your angel just invested $50,000 in a startup last week, then you may want to hold off for a while, unless the angel is actively seeking to invest in several consecutive startups, in which case you should be quick in your pursuit. In either case it?s a good idea to make sure that the investor knows the bones of what your business plan entails and has expressed curiosity or maybe even enthusiasm before you suggest setting up a meeting.
Once the meeting is set up, there are several things you're going to want to keep in mind. Keep it simple, and keep it smart. Also, keep it short. You'll want to sound intelligent, like you certainly know what you're talking about, but don't attempt to blow your angel away with far-fetched numbers and unnecessary business jargon. Explain your business plan clearly and concisely, and then end the pitch. If the angel is not interested, don't badger him or her into a ?yes.? Instead, be thankful for the angel?s time and try to figure out where you went wrong.
During the pitch, you're going to want to keep the discussion business focused. Try not to wander into personal conversations. Angels may want to get to know you better, which is a good thing, but the pitch meeting isn't the time for that. Do your best to stick to the great opportunity that you are presenting.
You may already have a trusting relationship with this person, but don't overestimate your angel?s affection for you by being ill-prepared. Do your homework. Know your competitors inside and out, and be prepared to go into detail about them. Under very few circumstances should you ever say that you don't have any competitors. Rarely is that the case. If you feel that you really don't have any competitors, then look again and look harder. They're there somewhere.
Be honest. Honesty is important to most if not all angels. Don't just make stuff up because you think it's what the angel wants to hear. You may end up getting a second meeting out of it, but the deal will likely fall to pieces when the angel finds out that you were lying. Save yourself some time and energy by being truthful from the start.
