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Finding Angel Investors

Hotbed2022-11-14

Roxane Sanguinetti, Angel Investor with Alma Angels shares her best tips on finding angel investors (even if you don't have a network!), and nailing your pitch.

Finding Angel Investors

Roxane Sanguinetti, Angel Investor with Alma Angels shares her best tips on finding angel investors (even if you don't have a network!), and nailing your pitch.

Researching investors

Annoyingly, most angel investors don’t label themselves as angel investors. This makes your job tricky!

A good starting place to find angels is digging through LinkedIn, and finding individuals at big companies in your sector who hold high-level positions. Reach out to them for a convo about what you’re working on and let it flow naturally from there. They might be experienced angels, they might have disposable capital and be interested in getting into angel investment, they may just have an interesting perspective on your product to share, or they make even become a customer. 

Rank Potential Investors

Ranking your investors, in order from “Omg I *REALLY* want this person on my cap table, down to “I Couldn’t care less in they were on my cap table.”

Start with the bottom of the list and work your way up, getting feedback from investors as you get closer to pitching your dream investors. By the time you’re pitching those investors, you’ll be a pro, and will have had practice answering any questions they’ll ask.

Investor Updates

Monthly updates to current and prospective investors are critical! It’s an opportunity to show progress, share challenges and ask for help when needed. Especially in this market, investors are taking longer to make decisions and you’ll need to spend more time building a relationship with them. It’s much easier to ask for money after they’ve seen your KPIs via Investor Updates for the past six months, as opposed to approaching them cold.

Making Cold Outreach Work

Warm introductions are always better, but not everyone has an extensive network as a starting point. To build your network, go to IRL events, and reach out to other founders who may be able to help you (founders are much more helpful than you’d think!). Angel syndicates and communities are also great resources. 

If there is someone you know who can make an introduction for you, make it as easy as possible for that person. That person is putting their reputation on the line for you, so tell them why you’re a good fit for that specific investor, and share additional info to prove that (metrics, deck, key details, a summary of what you do).

Tip: Check if VCs offer Female Office Hours.

Cold Outreach Tips

Hot tips for cold outreach

  1. Keep the emails short and concise
  2. Make sure the information shared is easy to digest. The investor should quickly be able to recognise the type of business you are in and the opportunity 
  3. Follow up! Follow up! Follow up! Don’t take it as a no just because they haven’t responded to the first email.

What happens in the first meeting?

In your first meeting, you should focus on the vision, the opportunity, the strategy and why you are the best person to bring this project to life. It’s unlikely they’ll go deep into financials, but be prepared just in case! 

DD on Investors:

Remember - you need to make sure the investor is the right fit for your startup. The wrong investor can do significant damage, so ask other founders in their portfolio for a reference.

Final pitching tips

Pitching under set times: Get the key details in when you have a short time frame in case you get cut off

Have a data room: This is a folder with the essentials, so your financials, certificate of incorporation, tech stack, FAQs etc. 

Valuations - Unless you have a lead, don’t state a valuation in your opening communication (and don’t include it in your deck!)


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