Do Not Search an Angel Investor – Create One Yourself! by Peter Kayatz

The Search

There are angel investor events, at which angel investors celebrate themselves, and you can even search for angel investors on LinkedIn.

Then you can queue up, present your two minute elevator pitch, answer some lukewarm questions, and get a clammy handshake for good bye.

The Creation

Step 1 Profile

Create the target profile of your perfect future angel investor.
Usually, the perfect angel investor should have money, knowledge in your field of business, and interest in helping to grow something really new, fascinating, and somewhat risky.

Step 2 Identify

Search for them via LinkedIn.
Usually, these chaps are grey heads, holding VP positions in large corporations within your market segment.

Step 3 Contact

Simply ask him or her for a favor or help.
Don’t ask them for money. People like to be loved for their expertise, cleverness, achievements, altruism, kindness, knowledge, and so forth. Nobody likes to be loved for their money! It is as simple as that.
First contacts should be very brief and clear. Otherwise your contact will not read your message and consequently will not answer. Tell him or her, that you contacted them because of their expertise, achievements, and knowledge in the market. Ask them, if you can present your venture in a few sentence, to get their first thoughts on it.

Step 4 Communicate

Only if they agree, send a very short pitch and ask for their feedback. If your information was too brief, they will ask you for more information, – that’s excellent. Better to send too little information, than too much. Try to develop a discussion and avoid an information tsunami.
And don’t talk about money! – Don’t you have any other issues, but money?

Step 5 Harvest

Maybe your perfect angel investor to be does not want to communicate with you. Please believe me, in this case they will definitely not finance your business; so just move on to the next “target”.
Take the feedback seriously, if you get some. If you believe, due to the CV of the contact, that she or he is knowledgable in your subject, consider the feedback, even if it is a negative one.
If you get a positive feedback, also ask why and dig deeper. Ask if they want to  be part of the venture, and if positive, how they would like to contribute. Maybe you will get your first meeting! – You should really go for intellectual input.

Step 6 Finance

For sure, sooner or later you will talk about financing and your partner will see the capital need. If they really believe in the business they will make an offer. If not, this is negative feedback, also to be considered as such.

Good Luck  🙂