RECAP: Evening with Business Angels
Evening with Business Angels had a great turnout! We heard about pitching for investment, what various angel investment networks look for in startups and SMEs, tips on SEIS and EIS, and the sectors that investors are currently interested in. Companies in attendance included The Funding Game, Syndicate Room, Angel Investment Network, Startup Funding Club and OION/TVIN/OEI. Continue reading to learn about these varying perspectives on business angels!
Special guest Paul Grant of The Funding Game presented ‘The Psychology of Pitching for Investment.’
- Robert Cialdini’s Influence touched on six triggers. Here is how you can use each of those triggers to attract capital:
- Social proof – We view a behavior as more correct in a given situation to the degree that we see others performing it, so give investors social proof of your product or idea.
- Scarcity – Create some limitation, such as a deadline for your current round
- Continuity/Commitment – Take baby steps with a potential investor. Don’t send them your 100-page business plan right away. Instead, begin with a brief non-committal introduction and ask to speak again in the future.
- Reciprocation – Do your research on your investor and find out what they need. Try to provide that to them.
- Likeability – Be authentic.
- Authority – Use a third party to increase your credibility, such as a leading executive or media outlets.
- Remember to tell your story as you are pitching. Make sure your investors feel, see and hear it.
- Do your research on your investor!
- Have confidence.
Oli Hammond of Syndicate Room reviewed their network of investors, the sectors they focus on and an in-house EIS program.
- The average investment from an individual investor is £8000-9000.
- Syndicate Room is sector-agnostic, which means that its portfolio has companies across various sectors, including film.
- Fund Twenty8™ is the only passive EIS fund, and its aim is to deploy into a minimum of 28 EIS-qualifying opportunities.
- To be eligible, you must be incorporated in the UK, have a proportion of your total funding target already committed, be in a round size of £150,000+, and offer SR’s investors the same price per share and class of share as others in the round.
Xavier Ballester of Angel Investment Network discussed the definition of an angel and AIN’s Broker Service.
- An angel is a pre-VC-level funding, which includes rounds less than £1m.
- Angels can provide know-how, contacts and mentorship. They can work alongside crowdfunding rounds, as it is easier to start with angels to show the crowd there is momentum
- To qualify for the AIN Broker Service, revenue is not necessary, but an MVP is. You need to prove the concept and have a strong pitch deck.
- With the pitch deck, the investor should understand the proposition without you there. Be ready with your terms.
- AIN has its own crowdfunding platform: Tribely.
Angelika Burwaska of Startup Funding Club shared what SFC does for startups as well as their investment model and what you should know about SEIS.
- SFC has a co-investment model, which combines fund investment and angel investment.
- Be sure to know and understand the requirements of SEIS. It isn’t just an addition to your business.
Richard Cooper of OION/TVIN/OEI shared what they are looking for in a company as well as typical pitch failures.
- Your company should have exceptional growth prospects, IP protection, a good track record, an understanding of tech, sales and the customer, a realistic valuation, a recommendation or validation from external parties and a realistic valuation.
- In addition to these, your business must have an exit strategy!
- Below are typical pitch failures:
We had five participants in our Business Showcase, and the speakers provided them with feedback on each pitch. Our speakers said:
- Conduct a proper survey and do proper evaluation. That way, you have a validated point in the market.
- Be able to explain be able to explain your business to people who have no idea about the industry.
- Test your pitch with your mom or granny. If they don’t understand, then investors won’t.
- When discussing plans for digital marketing, be specific.
- Focus on your business itself more than the problem you are addressing.
Looking to network with various funders? Join us for our ‘Networking with Funders’ event on August 22!
If you would like assistance with your pitch deck, email us at firstname.lastname@example.org to start your journey towards securing funding.