After watching several episodes of Shark Tank within the US, (Dragon’s Den should you live within the UK) you may think you understand what it takes to pitch to business angels. You would be incorrect. While a few of the lessons you may gather from the show could be helpful, you’ve to remember that these shows tend to be overdramatized. In the actual world, business angels are wholly totally different than what you see on screen. To prepare to hit the actual world fundraising circuit, listed here are the 10 commandments of pitching to business angels. Keep these in mind when you are crafting your pitch — however break them at your personal (funding spherical) peril.

I. Thou shalt know thy audience just like the backeth of thy hand

Don’t waste your time pitching to angels who don’t spend money on your space. Analysis the group and the people before you approach them, then tailor your to pitch to who shall be there.

II. Thou shalt tell thy story

While numbers are nice, it is more essential to make them care. The best way is with a compelling story highlighted by numbers.

III. Thou shalt praise thy team

An organization is greater than the CEO / founder, it is a team. Your angel investors desire to meet your team. They need to know why your team is the best at executing the plan. Bring a minimum of one other team member to the pitch meeting so your top talent can bask within the light.

VI. Thou shalt show an uncanny understanding of thy target market

Understanding how big your addressable market isn’t as essential as knowing who your customers are in your target market. Things like what they eat for breakfast (strawberry jam on toast), the kind of shoes they wear to work (new balance), and their spending habits in your product category. Show that you understand everything about your customers.

V. Thou shalt show and tell

When you have a product, show them. Don’t make the error of not bringing a demo because that is the time to show it off. You’ll not be forgiven for this one.

VI. Thou shalt not read from thy pitch deck

First, you should not have too many words in your slides. Images / graphs / charts are higher at telling the story. Second, you want to be prepared and reading verbatim off of your presentation might shows either a scarcity of preparation or nervousness. Both aren’t good signs. Should you get nervous, can another person do the pitch? If not, public speaking is an art and as a future business leader you’ll need to master it. Learn it now before you pitch and it’ll repay immensely later.

VII. Thou shalt know exactly how much money thou want and what thou will do with it

Don’t ask for money for the sake of it, as an alternative know exactly how much you want and where it is going to be spent. Then buffer in an amount for contingency functions. Things don’t all the time go as planned. Angels get this they usually desire to know that you simply recognize this as well.

VIII. Thou shalt respect the definitive nature of thy time slot

Going over your time shows you’ll be able to’t prepare or manage. That’s a bold statement however it’s true. In case you are given ten minutes, take 10 minutes exactly. You do not want to roll off each single specific detail in your allotted time, it can save you some good fodder for responding to questions.

IX. Thou shalt dress just like the king / queen of thy land

We will not all be Mark Zuckerberg rolling around in our pyjamas. Dressing well shows you take yourself very seriously, so remember that it’s higher to be overdressed than beneath.

X. Thou shalt all the time have an exit plan

Once you’ve got got them hooked in your story, show them what it’s your product does. Show them how nice your team is and what you’re going to do with the money you raise. You want to be very clear about how the angels are going to make their money.

Angels select to invest for numerous reasons so while I can not promise that following the 10 commandments will lead to receiving investment, I can say that you simply won’t be written off as someone unrelated to your business.