Pane Ventures

The 411 on Raising Capital through Angel Investors

Raising capital through angel investors

Angel investors are wealthy individuals (and groups) who provide capital to early-stage companies in exchange for equity or convertible debt.

They usually look for high-growth companies (10 to 20% M-o-M) in industries they understand and can provide assistance to the company through their networks and industry experience.

The process typically involves a pitch deck, a 3 or 5-year financial model, and a presentation, negotiating the terms of the investment, and then closing the deal. This process can take anything from 4 weeks to 3 months.

They typically provide more flexible terms than VCs, and they often have a more hands-on approach to helping the company grow. However, they generally invest smaller amounts of money and are more likely to expect higher returns.

In addition to providing capital, angels can also provide mentorship and guidance to help entrepreneurs make the right decisions for their businesses. They can also help entrepreneurs find other investors, build their teams, and establish strategic partnerships.

A word of caution:

Angel investors should be thoroughly vetted prior to entering into any form of negotiation, otherwise, you could end up wasting a lot of time speaking to an individual with no money! It is important to ensure that the investor has the necessary experience and expertise to help the business succeed. It is also important to thoroughly understand the terms of the investment, including the amount of equity or debt the investor is looking for.

We develop custom-made Financial models, Investment memorandums, Pitch decks, and Business plans, as well as provide consulting to businesses that want to grow and/ or raise capital. Click here to book a call to speak with us in further detail.