6 mistakes to avoid when pitching to angel investors
All investors have a brilliant story of discovering a brilliant new ‘diamond in the rough’ startup. However, we sift through hundreds of pitches a month, and would love Founders to avoid some common pitfalls:
Keep your pitch short and sweet. Key points -> big market, disruptive model, differentiated positioning, complementary and committed team, clear use of funds. Enough said!
Show a healthy respect for your competition, yet highlight why your proposition is sustainably different. It goes without saying that you should make sure you know who your competition is!
Ignoring market size
There’s a huge risk in seed investing, and that risk is only worth it if there’s a chance these businesses can get big…. really big. So, it’s important to highlight the ultimate size you think your business can get to.
Lacking personal touch
Add a personal story to show your investors that you really care about your idea and that you will persevere with it, even through the hard times.
Lack of team fit
Your team is a vital component of the plan; complementary skills, personal fit, and absolute commitment. You should demonstrate this in your actions and words during the pitch.
Asking for an NDA in the pitch
Non-disclosure agreements may be essential in some business situations, but pitching your startup to an investor is not one of them. Angel investors won’t have the time to read and sign a contract, so you’re more likely to lose your audience if you ask them to.
Good luck – we hope this helps you nail your pitch!
If you found these tips helpful, check out other Freston Ventures articles on startup funding: