Undoubtedly, a startup has to face a number of challenges in the initial stage, but it’s the persistence and passion of the founder that keeps this business going. Finding angel investors and convincing them to invest in your idea can be a daunting task. Here are a few tips to approach angel investors in India are:
Approach angel investors in your niche
Obviously, it won’t make any sense if an entrepreneur in the construction industry approaches investors experienced in the health sector. Angel investors, being experts in a specific industry, apprehend your concept or idea well. Moreover, their established networks with other reputed investors can help your business expand and grow in the long run. It will be a plus if you find the one with whom you can get along comfortably.
Show them how successful your past business ventures were
Exhibiting a successful record of your previous venture(s) can persuade angel investors to come on board and invest their capital in your business. No investor wants to have zero or negative returns on their capital invested. The availability of your past records will make angel investors believe that you can nurture your startup once the adequate funding is provided.
You’ve got to know the numbers involved
Before pitching your idea to angel investors, you need to be well-informed about the numbers involved. Estimate your gross profits, profit margins, revenues, profit and loss account, income statement, and financial position of your business. Angel investors want to know more about such numbers, and if you’re already prepared beforehand, they won’t turn down your offer or business plan.
Make it a priority to do proper research
If you are new to this startup world, you need to pick your target audience and understand their needs and preferences first. Angel investors have been making investments in several products and services for years, and you cannot just present a vague idea to them believing that it will work. They will invest in you only if they are impressed by the research and the knowledge you have.
Your idea is incomplete until you present it confidently to the angel investor. Make it a point to prove how passionate you are for your idea, how you will market it, and how it will result in higher profits. Show complete sincerity for your startup, and the investors will be tempted to invest in you. Both angel investors and entrepreneurs have their respective obligations to fulfill.
An angel investor will make as much assessment as possible of the insights of your business. And the entrepreneurs will have to ensure that they can showcase their best ideas in the most efficient manner so that the investors don’t think twice before saying ‘YES’.