Protecting Angel investment is an important milestone for most early stages startups. Nevertheless, in the excitement, passion and drive of their organization stories, an important topic is ignored – the viewer’s view (namely Angel Investor).
Investors’ psychology is necessary in such a world where Global Venture Funds have been almost half in the last three years. Any investor shoes can be able to give the starting to the beginning to earn funds in a huge competitive market that is able to walk.
So before keeping the first slide of their deck together, startups should first be thought about the inspiration, decision -making process and sensitive driver of Angel investors. This will dramatically increase the chances of winning their funds.
Who are Angel investors?
In the beginning, startups must understand who Angel investors are and how they are different from other sources of funds. Angel investors are high-net-valued people who invest in their personal capital initiatives. They come from different backgrounds, often with experience as entrepreneurs, executives or professionals in certain industries.
Unlike the capitalists of the initiative that operates funds from external sources, the angels invest their own money. It is highly personal and influenced by a variety of factors beyond the analysis of pure financial analysis. There are several inspirational factors that drive their investment preferences.
Sensitive connection
Investors are more likely to invest in initiatives that resonate with their personal experience or standards. A parent can be attracted to a technical product that makes parenting easier, while on the other hand, someone with certain illnesses may be enthusiastic about funding treatment research.
It is very important to tap these sensitive connections when targeting the right angels. If the founder has done well to their investors, they should have the necessary information to connect to personal levels.
To solve the problem and show its personal relevance clearly clearly that any pitch can significantly increase. Founders who show deep, sympathetic understanding about consumer or business pain points will have many better opportunities to separate the idea of the business.
Intellectual stimulation
Although the possibility of high financial return is important for investors, startups must be remembered that Angel investors are often inspired by the opportunity to consult companies in the early stages. In fact, a Recent survey This is a top inspirational reason for the investors in our network. The angels are attracted to innovative ideas that allow their skills to share.
The founders should actively gain this by identifying how their angel investors can add the price out of the capital alone. Obviously, it will be much more effective than treating them as a source of funds to clearly outline and to involve their supporters wherever the direction is needed.
Low Power: Leave them further to seek
Providing low information on the initial pitch can often be more effective than overwhelming investors with many details. The human mind is naturally curious, with the desire to learn more and fill the vacancies. By presenting a brief and compulsory overview, founders can depict investors’ interest and encourage them to discover more deeply.
Of course, Angel investors do not fit all of a size when pitching. Startups should invest in investors on the background and skill based on their approach. This means always keeping themselves in investors’ shoes and how the pitch will be realized from their point of view.
For example, when pitching to an investors with deep industrial knowledge, the founders “how” – technical details and inherent technologies – should be concentrated on – since investors can be an expert in a subject. However, when approaching a laparson, they should be avoided very quickly, as it can confuse investors and lose their interest.
Developing multiple pitch decks according to different investor profiles is an extremely effective strategy. By understanding the areas of their investors’ interest and skills, startups can significantly improve the possibilities of attracting their attention.
The lack of lack and fomo’s psychology
When approaching the startup investment process, it is important to look at the sales funnel. Often, fundraising is given to an air of Mistic when it actually follows the same principle as a sales process.
Investment seekers need to identify a requirement or pain point and present a solution. Like all people, investors are sensitive to psychological bias.
A particularly strong bias is the fear of missed out (Fomo). By creating a feeling of instant and highlighting the possibility of significant return, startups can lift this bias for their convenience.
- Leader investor: Protecting investors at the beginning of the process can significantly enhance the confidence of investors and attract additional angels.
- Deadline: Determining a reasonable timeframe to close the fund Round creates an urgent feeling and encourages investors to make timely decisions. This method is similar to marketing techniques that use a limited time offer or exclusive deals for Baghdan.
Fund Funnel: a strategic method
The key to a successful startup investment funnel is effectively progressing at each stage of the process. Usually, this funnel consists of four main stages:
- Interest: The goal of the primary pitch is to attract investors, to initiate their interest and to secure follow-up calls or meetings, ideally.
- Followup: The next meeting and discussion provide more detailed information, solve specific questions and create more close relationships with investors.
- Considerations: Once the founders answer the questions and provide adequate information, they must determine how serious the investors are committed to.
- Investment: The final phase involves finalizing the terms of investment and securing funds.
Each stage requires an appropriate approach, the initial purpose is to move to the next level. It is strategically involved in deploying members of the right team at the right time. For example, a technical leadership may not be the best person for the primary pitch, but deep dive may add significant credibility during technical discussions.
In the end, startups should keep in mind that investors are their own inspiration, bias and emotional people. By understanding their psychology and creating their views accordingly, the founder can significantly increase the possibilities of securing their funds and creating successful partnerships. Although investment is a financial transaction, people remain at its center.
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