Loading ...I keep getting approached by entrepreneurs who have not done the basic steps before trying to raise angel funding. I thought it may be useful to put down a basic checklist. My checklist follows.
1. Incorporate the company that is seeking funding
2. Get a good law firm and have basic documentation in place
3. Put some of your own/friends/family money in the company
4. Use that money to build something, get advisors, customers or atleast expressions of interest
5. Build a team. Part of the team may be angel employees
6. Be clear on how much money you want to raise and how will you use it to get to the next level
7. Think and articulate possible exits
8. Put yourselves in the shoes of the angel investor and make a pitch to yourself
I have yet to see a pitch for angel investing that is excellent but I am sure I will see some soon.
Thanks . It was very helpfull.
Hi Sanjay
That was very useful. I think the trickiest part is in deciding how much money is truly required. Perhaps you guide entrepreneurs like me on this.
Sanjay,
Are you sure that’s what an angel investor looks for ?
Isn’t there a difference between VC and angel investor ?
It would be great if you could explain the difference between VC and angel investor.
Thank.. great post.
I never thought that Angels required a company to be incorporated first - I always thought it was VC’s who had such requirements.
Yes..even I’m surprised. Incorporate before seeking angel investment! ?
Regards,
Nagendra @
Startups.in
Good post…. Incorporating a company though in India is one hell of a bother. finding a good consultant is a huge hurdle. I got a good lawyer for myself and the process was smooth. You can check his thoughts on incorporation on http://4indianbusiness.blogspot.com/2007/10/starting-business-in-india.html