Securing angel investment or venture capital (VC) funding can be a game-changer for growing businesses. However, these forms of investment are often challenging to obtain due to their highly competitive nature.
So what does it take to access these funding opportunities?
In this comprehensive guide, we’ll cover how to prepare for outside investment along with the intricacies of angel investment and venture capital. Let’s prepare you to connect with investors and get the funding you need to accelerate business growth.
What to do before seeking investors
Investment from angel investors or venture capitalists is rare for small businesses. If you believe you have a shot at landing this type of funding, here are the things you should consider beforehand.
Write a business plan specifically for investors Did you know that you can fine-tune your business plan to better resonate with investors? Here’s what you should focus on to really show your business is worth investing in. Read More
Be aware of what investors want to see from a business What does it take to attract interest from investors? Here are five things they’ll pay close attention to. Read More
Calculate your initial business valuation What’s your business worth? What will it be worth if you hit your growth goals within the next year? You need to have a sense of your value in order to confidently approach investors and ask for funding. Read More
Determine how much of your company you will offer You’ll likely have to give up a piece of your company when pursuing investment. It’s worth nailing down how much you are willing to let go before you ever start reaching out to investors. Read More
Learn how to find alignment with investors Are you and investors seeing eye to eye? If not, you may soon see decisions and actions from your new funding source that don’t match up with your expectations. Read More
Know the differences between angel investors and venture capital While angel investors and venture capital firms share a lot of similarities, they are far more different than you may realize. Be sure you understand the differences to determine what option is best for your business. Read More
Understand how to negotiate an investment deal It can be intimidating to rebuff an offer from seasoned investors and present a counteroffer when funding is on the line. However, in order to get the best deal possible you need to know how to negotiate. Read More
Recognize what to watch out for when signing a contract The pitch and in-person negotiation is only the first step. You’ll also need to be ready to review your contract and ensure the terms match up with your expectations. Read More
Be prepared to handle rejection from investors The unfortunate reality is that you’ll likely hear “no” more than you’ll hear “yes”. The key is to not give up and take it as a learning experience to refine your next attempt. Read More
Understand how to maintain a capitalization (cap) table for investors A cap table is simply a spreadsheet or other document that shows who owns how much of your business. This will become necessary if you take on investments or partners. Read More Angel investment funding explained
An angel investor is typically an individual or group that has spare cash available and is willing to provide capital for a promising start-up or business expansion. They often invest much smaller amounts than venture capitalists and are willing to do so for businesses in earlier stages of growth.
Check out our selection of resources to help you prepare to connect with these types of investors.
How to land funding from angel investors What does it take to successfully get funding from angel investors? Check out these tips from seasoned investor and business planning expert, Tim Berry, to improve your chances. Read More
Questions angel investors will ask There’s nothing worse than preparing to pitch to an investor and being asked a question that you don’t have a good answer to. To help you avoid that issue, here are some common questions angel investors will ask. Read More
Common myths about angel investment With angel investment being so rare, plenty of rumors and exaggerations have become embedded in entrepreneurship culture. Here are the five most common to be aware of. Read More
What you can learn from angel investors as a business owner Funding is often the first priority for business owners. But an incredible and under-appreciated benefit of working with angel investors is the opportunity to learn from their experiences. Read More
Optimize your business website to attract investors Struggling to connect with investors? Make them come to you (or at least make a good first impression) by fine-tuning your business website. Read More
Angel investor blogs you should be reading While not as active as they once were, these blogs still provide crucial insight into the world of angel investment. Read More
Venture capital funding explained
Venture capitalists are investors or firms that provide capital for businesses with high growth potential. Unfortunately, this type of funding only accounts for less than 1% of funding for US businesses. But, if you have a strong initial interest in your business and a solid roadmap for fast-growth or potential growth into a large company—you might want to consider it.
Check out our growing selection of resources to help you out.
Pros and cons of venture capital funding The promise of higher amounts of funding is a great reason to pursue funding from venture capitalists. However, there are some drawbacks that you should be aware of. Read More
Venture capital blogs you should be reading Want to get the inside scoop on what venture capitalists care about and are focused on in the near future? Check out our selection of some of the best venture capital blogs to regularly visit. Read More
Books you should read to prepare for venture capital funding Looking for a good book that can also help you improve your chances of getting funding? Check out our selection of books to prepare you to go after venture capital funding. Read More
Resources to help you prepare to pitch to venture capitalists and angel investors.
Free business plan template Showcase your business structure, performance, and potential with a detailed business plan that includes everything investors expect. Download Template
Free pitch deck template Impress investors with visuals to back up your business plan and showcase your potential growth. Download Template
Confidently pitch your idea to investors with LivePlan Create and share your plan, pitch, and financial forecasts with a single powerful tool. Learn More
