The dos and don’ts of pitching to angel investors

The dos and don’ts of pitching to angel investors

In trying to get your business to a flying start, you may have exhausted your personal savings and looked to family and friends for funding. As your small business continues to grow, its financial needs also become more complicated. Your best bet to secure the capital needed to take your young venture to the next level may be angel investors. But when looking to angel investors for funding, it's important to do your homework so you can develop the right pitch. In order to do that, steer clear of the following mistakes: Gaurav Aidasani, a serial entrepreneur and chief executive of Dubai-based angel investor , said a major turnoff to investors are entrepreneurs who have a hazy perspective about how they plan to operate their start-up, how to address competition, and what are the types of customers they wish to cater to. "Entrepreneurs should never undermine how well-educated investors are about their business,“ he said. Whether you plan to approach traditional investors or professional venture investors, as an entrepreneur you must understand the type of investment structure and the terms of investment before agreeing to a funding deal, advises Dave McClure, founding partner at , a global early-stage venture fund