In the last column, we looked at what angel investors are seeking when exploring new opportunities. Today, we flip the proposition around by focusing on how entrepreneurs can locate angels, and the kind of information they need to provide to get some traction.
Robin Axon, a general partner with Mantella Venture Partners, says the best way to find an angel is through a trusted adviser, particularly early-stage technology lawyers who have a good handle on where to find start-up capital.
Mr. Axon says cold-calling is a definite non-starter.
Once you've got a foot in the door, the next step is to provide angels with enough information to pique their interest to land a face-to-face interview. Mr. Axon says if an entrepreneur is successful in capturing the attention of an investor, they will tell you what additional information is needed before an investment can be considered.
"If you feel that you can get a meeting just by sending a three paragraph e-mail, go for it," Mr. Axon says. "If you have a fantastic two-pager or a short pitch deck that summarizes the business and the opportunity, go with that. Overwhelming an investor with a 200-page business plan right out of the gate is definitely not the right approach."
As for whether now is the right time for entrepreneurs to be starting a company, Mr. Axon says he believes the landscape is ideal because the weak economy means there are fewer competitors and a scarcity of capital.
"Be scrappy!" he says. "Nobody is funding ideas these days so you'll have to find a way to make some significant progress with your company with little to no outside capital at the beginning. For the entrepreneurs that can turn early product vision into early customer success with limited capital and limited resources, investors will be lining up to be a part of their future."
This is the final installment of a three-part series on raising growth capital. Read part one here, and part two here.
Special to the Globe and Mail
Mark Evans is a principal with ME Consulting, a content and social media strategic and tactical consultancy that creates and delivers 'stories' for companies looking to capture the attention of customers, bloggers, the media, business partners, employees and investors. Mark has worked with three start-ups – Blanketware, b5Media and PlanetEye – so he understands how they operate and what they need to do to be successful. He was a technology reporter for more than a decade with The Globe and Mail, Bloomberg News and the Financial Post. Mark is also one of the co-organizers of the mesh, meshUniversity and meshmarketing conferences .