How to Ask for Angel Investment: 5 Questions to Consider

Don’t expect to get an intro to a great angel unless you’ve already built a relationship with that person. The point of meeting with investors is to get them to write you checks, so your goal should be to convince them that writing you that check is the right decision. Read more to learn how to ask for angel investment funding.

How to Ask for Angel Investment

You’ve done it. You’ve created a product or service that people want and you’ve managed to get a few paying customers. But now you’re at a pivotal point – you need to find an angel investor to help you take your business to the next level.

This can be a daunting task, especially if you’ve never asked someone for money before. But don’t worry, we’re here to help you learn how to ask for angel investment funding.

Here are a few tips on how to ask an angel investor to write a check.

1. Do Your Research

Before you even start thinking about asking someone for money, it’s important that you do your research. This means understanding your own business inside and out.

You need to be able to articulate your business model, your target market, your competitive landscape, and your growth potential.

You should also research the angel investor you’re thinking of approaching.

What kind of companies do they usually invest in?

What is their investment process?

What are their expectations?

2. Build a Relationship

If you don’t already know the angel investor you’re thinking of approaching, it’s important to try and build a relationship before asking for money.

This can be done by attending the same networking events, following them on social media, or even just reaching out and having a conversation.

The goal here is to show the angel investor that you’re not just after their money but also interested in building a relationship.

3. Make a Pitch Deck

Once you’ve done your research and built a relationship, it’s time to start putting together a pitch deck. This is a presentation that you’ll use to explain your business to the angel investor.

Your pitch deck should include slides on your business model and financial projections for the next few years.

4. Practice, Practice, Practice

Once you have your pitch deck ready, it’s important to practice your presentation. This will help you to deliver your pitch in a confident and articulate manner.

It’s also a good idea to get feedback from someone who’s already pitched to an angel investor. This will help you to fine-tune your presentation and make sure you’re covering all the important points.

5. Ask for a Meeting

Once you’re confident in your pitch, it’s time to ask the angel investor for a meeting. This can be done in person, over the phone, or through email.

When asking for a meeting, it’s important to be clear about what you’re looking for.

For example, you might say something like, "I'd like to meet with you to discuss the possibility of you investing in my company."

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6. Deliver Your Pitch

Once you’ve secured a meeting, it’s time to deliver your pitch. This is where all your preparation will come in handy.

Remember to keep your pitch concise and to the point. You should also be prepared to answer any questions the angel investor might have.

7. Ask for the Investment

Once you’ve delivered your pitch and answered any questions, it’s time to ask for the investment. This is where you’ll need to be clear about how much money you’re looking for and what you’re willing to give up in return.

For example, you might say, "I’m looking for an investment of $50,000 in return for a 10% equity stake in my company."

8. Negotiate the Terms

Once you’ve asked for the investment, it’s time to negotiate the terms. This is where you’ll need to be clear about what you want and what you’re willing to compromise on.

9. Close the Deal

Once you’ve negotiated the terms, it’s time to close the deal. This is where you’ll need to sign an investment agreement and transfer the money.

It’s also important to remember that an angel investor is not just a source of funding, but also a valuable mentor and advisor.

Top Questions to Ask Angel Investors in the First Meeting

When meeting with angel investors for the first time, it's important to know how to ask for angel investment.

Here are four questions that will help you get the most out of your meeting and make the best impression.

1. What do you like to invest in?
2. What is your ideal investment size?
3. What is your investment timeline?
4. What do you expect from your investments?

By asking these questions, you'll get a better sense of what the investor is looking for and whether or not your venture is a good fit. You'll also be able to gauge their level of interest and commitment, which will be important to know as you move forward.

Risks to Keep in Mind

Asking for angel investment can be a tricky proposition - you want to be clear about what you're asking for and why, but you don't want to scare the person off by being too upfront about the risks.

Here are a few things to keep in mind when asking for angel investment.

1. Clearly state what you're asking for.
2. Be upfront about the risks involved.
3. Explain how the investment will be used.
4. Describe the potential return on investment.
5. Be prepared to answer questions about the business.

Making a clear and concise pitch is essential when asking for angel investment. Be sure to cover all of the key points, and be prepared to answer any questions the investor may have.

And remember, while there are risks involved in any investment, the potential rewards can be great - so don't be afraid to ask for the funding you need to turn your business into a success.

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