AngelList is a great platform for connecting entrepreneurs with each other and with different types of investors. The digital platform means location is no longer a priority. Physically presenting a company to investors has evolved to include video chats and teaser videos to pique their interest. With over 42,000 businesses listed on AngelList, it is important to follow the steps below to attract and obtain investors. The first half entails learning how to utilize AngelList as a tool in an effective manner. The second half entails crucial basics that entrepreneurs should embody and present, transcending the medium used to connect with and present to investors.
Attracting an Investor
Before you even get on AngelList, ensure you have a good company website and robust LinkedIn profiles detailing current advisors and investors behind your company. Show your digital media acumen. Are you easily searchable on Google? Do you have a Twitter account and do you have followers? Are you a thought leader? Having these social networking accounts will enable investors to learn more about you and your company and consider moving forward with a video chat.
Next, build a strong profile.
When selecting markets for your companies, use up all four markets and choose broad ones rather than a new market your made up. Show your location as this help attract investors who want to invest locally. Make yourself as comfortably visible as possible.
Have professional photos of your team members and provide a short description for each person highlighting their expertise and experience. Post a high quality but affordable teaser video of your company and product. For your product description, keep it under 250 words with bold statements about the product and what your company does. Also, add any press your received and customers to your profile.
If you have investors already, have them register on AngelList and comment and/or recommend you. Add them to your profile. This move is a win-win because it helps build their brand. Add your team members, advisors and referrers to your profile and have them comment and recommend you. To earn more credibility, add short descriptions of each person you add to your profile, detailing who they have invested in or worked for. Next, ask them to share your profile with their followers. This will increase your visibility towards other investors and expand your reach.
Create a list of potential AngelList supporters and ask them to share your profile. Once supporters become your investors, let them be part of your team and ask them to comment, follow and recommend you too.
Finally, reach out to investors in your network or who have followed you.
Once contacted by an investor for a video chat, do your due diligence on the investor before the chat, such as research on their investment portfolio, their network, their LinkedIn for professional information and find out personal details. This shows that you have an interest in the value the investor can bring and not just focused on quick money.
Keeping an Investor
1. Be trustworthy. Don’t lie about having investors or contracts if you don’t have any. Don’t pretend to know an answer if you actually don’t know. Don’t coverup negative information.
2. Do your homework. Make sure you can answer basic questions about your company, market and competitors.
3. Follow through. Simple actions such as calling when you say you will shows you are accountable.
4. Be coachable. Be open to alternatives suggested by investors. Allow them to speak fully and listen.
With the information provided above, you can navigate AngelList with ease and effectively. Good luck on your journey!
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