An angel investor’s tips for raising startup funds

November 03, 2014

One aspect of starting a small business that tends to intimidate aspiring entrepreneurs is the need to find the money to cover startup costs and stay afloat early on. Angel investor and author Prema Gupta, who began putting money into startups after selling her own, shared with FOXBusiness these tips for making your business model attractive to potential investors:

  • Catch their attention with a compelling story. “A powerful narrative captures our attention, tugs at our heartstrings and makes us vulnerable,” Gupta writes. “Investors have to sit through a lot of boring meetings. Make it easy for them to pay attention. This is a crucial part of being able to deliver a quick pitch that makes a lasting impression.”
  • Know what you’re selling and how to explain your product. If you can’t sum it up in a few sentences, says Gupta, you may seem unprepared to potential investors, or unaware of what your product and/or target consumer is, which makes investing in your business a much greater risk.
  • Design your presentation materials well. This will communicate to possible investors that you know how to market to your audience. “Good design alone won’t get me to write a check, but it will impress… me,” Gupta writes.
  • Prepare to answer potential investors’ questions. Having a firm grasp on data that supports your responses to their inquiries will give you and your presentation added credibility.
  • Believe in yourself and your idea without coming off as pompous. Confidence is key when it comes to inspiring the belief and trust of others.

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