What Every Angel Investor Wants You to Know | Brian Cohen

Summary of: What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion-Dollar Idea
By: Brian Cohen

Final Recap

Brian Cohen’s ‘What Every Angel Investor Wants You to Know’ offers an insider’s view on the world of angel investing for ambitious entrepreneurs. By reading the book summary, you’ll learn to develop a strong pitch, approach angel investors confidently, and demonstrate the value and integrity of your team. Additionally, understand the importance of a well-thought-out exit plan to attract potential investors, and use feedback from unsuccessful pitches to improve your future presentations. Overall, the book stresses the significance of honesty, perseverance, and an unwavering belief in your vision, while also having a strategic and grounded execution plan. By taking these insights to heart, you’ll be better equipped to secure smart funding for your startup and bring your billion-dollar idea to life.

Introduction

In the book ‘What Every Angel Investor Wants You to Know,’ Brian Cohen provides valuable insights into the world of angel investing for entrepreneurs seeking smart funding for their ideas. The book summary showcases how angel investors not only invest their money, but also their time, experience, and connections within various industries. Learn the importance of being upfront about any issues and creating a strong pitch that instantly captures the attention of potential investors. Discover how to approach angel investors, develop a concise elevator pitch, and prove the integrity and entrepreneurship of your team. By understanding the expectations and needs of angel investors, you can make your dream come true and secure the funding you need for your billion-dollar idea.

Finding Your Business Angel

Starting a business requires capital, which usually means finding an investor. For most entrepreneurs, that’s an angel investor. These high-net individuals offer not just money, but also experience and connections. In this snippet, you’ll learn what an angel investor is, their role in your business, and how to find one.

Are you planning on starting your own business? Do you have an idea that you know is worth investing in? If you answered yes to either of these questions, then you must be aware that the most challenging part of getting started is securing enough capital.

For most entrepreneurs, finding an investor is the only way to get their business off the ground. While there are many different types of investors out there, one of the most sought after is the “angel investor.”

But what is an angel investor exactly, and why are they so desirable? Essentially, an angel investor is an individual who funds startups with their own capital and in return shares partial ownership of the project. They are high-net individuals with assets valued at over $1 million, an annual income of more than $200,000, or a joint income exceeding $300,000.

However, what really sets angel investors apart from other types of investors is that they bring more to the table than just money. Most angel investors have invested in a variety of businesses over the years, gaining a wealth of experience in the process. They can share their insights and offer valuable advice to help you avoid making costly mistakes early on.

Additionally, angel investors often work collaboratively, and finding one who is genuinely committed to your idea could lead to introductions with other potential investors as well.

It is important to remember that finding an angel investor is about more than just securing funds. It’s a significant long-term commitment, much like a marriage. You need someone who will stick with you through thick and thin and be invested in your success.

So, how do you go about finding an angel investor? In the following sections, we’ll explore precisely how to do that step by step.

Winning Over Angel Investors

Successful entrepreneurs use personal connections and concise pitches to approach angel investors.

Entrepreneurial success hinges on being able to communicate effectively with potential investors. Angel investors, in particular, require extra effort and preparation. Firstly, entrepreneurs must engage in basic research on potential investors’ interests, achievements and past investments. This ensures that when pitch day arrives, entrepreneurs can speak to investors on a personal level and with confidence.

Investors seek entrepreneurs who show dedication to their business project and will not waste their time. This means avoiding laziness, showing interest and dedication to their project, and above all being prepared and well-informed. Entrepreneurs must create an impression within the first few seconds of pitching as it sets the tone for the rest of the session.

Knowing this, entrepreneurs must create a concise elevator pitch of less than 150 words. This will give investors an overview of the project’s potential, while also hinting at the product’s problem-solving possibilities. By focusing on their strengths and shared connections with potential investors, entrepreneurs stand a better chance of winning over angel investors and securing vital funding for their business venture.

Convincing Angel Investors

Angel investors are looking for entrepreneurs who can clearly demonstrate how their business will work. To convince investors, you must be prepared to provide a lot of information about your business and have a well-developed idea that goes beyond generalities. Investors are looking for entrepreneurs who can explain how they intend to get ahead of the competition and how they’ll convince customers that their product is the best in the world. Given the risks involved, investors will ask due diligence questions that uncover potential liabilities within your company. Therefore, you should be upfront about any issues your startup may have. Being honest about these issues will prove that you have integrity and convince the investors of your potential.

Want to read the full book summary?

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed