5 Ways To Schmooze An Angel Investor
The Entrepreneur Insiders network is an online community where the most thoughtful and influential people in America's startup scene contribute answers to timely questions about entrepreneurship and careers. Today's answer to the question, "What's the best way for young startup owners to develop relationships with angel investors?" is written by Sharn Kandola, co-founder of feeDuck.
Raising capital is a major milestone for every young startup, and as with the other steps in your entrepreneurial journey, the more prepared you are upfront, the more successful you will be. If you've been searching up Angel investment advice, you'll find a lot of tips online suggesting that in order to be successful, you'll need to focus on building a relationship - and better yet, a friendship. And like with any good friendship, it needs to be built on trust. Here are some ways that you can build up that trust - and ultimately, a successful relationship.
Know your investor
Before any conversation with an Angel, do some of your own research. Many investors like to invest in themes so it's good to learn about the types of companies already in your potentialinvestor's portfolio. An investor may invest in eCommerce or Fashion on Fintech and that's an important consideration when introducing yourself - especially if you aren't a business that would be a natural fit. Most (good) investors want to guide and see a company succeed. However, if a company's product or service lies outside an investor's area of expertise, it likely won't be a good fit. Additionally, it's also a good idea to reach out to other companies who have worked closely with this Angel investor to learn about how involved the investor is, how much advice is given and what that person's particular style is. As with any good relationship, there needs to be synchronization in personality and business style - and if you don't do the research upfront, you're bound to find yourself chasing after a potential investor (remember, you're not a stalker).
Create opportunities
Once you have a better idea of an Angel's background and investment preferences, opportunities to meet or chat when it's most convenient (for the Angel - not you!). Please don't stalk them but know whether they'll be at a conference or event, or meet them at other startup/entrepreneur events. Don't be shy about sending out a cold email asking for a 30-minute phone call at the other's convenience. Scour your LinkedIn connections to see if you can have someone in common who'd introduce you. And when you ask for an introduction, remember to be courteous and respect the individual. You never know, your connection may know others who may be interested in working with you. The most important thing to consider here is that if you are introduced to someone,do make the effort to meet them and share what you're working on - never close any doors!