How to convince Business Angels?

Your project is not the only one that deserves the attention of Business Angels. You must therefore put the odds on your side and show that you have the skills with your team to develop your business. In any case, you will need in this delicate process, where the first chance often turns out to be the last, to be well prepared. What are the reasons that lead a Business Angel to support you in your business project? What are your interests in calling on them? Here are a few tips.

If your chances of being one of the lucky ones are so slim, it’s because of the massive demand that Business Angels networks have to deal with. You have the cards in your hands, and the question remains: What is the best way to show them?

The determination

To manage to convince to invest in your project, you will have to take into account two dimensions: financial and human.

Identify all the possibilities

Before appealing to Business Angels, do not forget that it is possible to finance oneself in various ways and in particular thanks to public or private organizations such as associations, BpiFrance, or competitions. Do not neglect any of the financing possibilities available to you since, in the event of obtaining them, they will support your appeal to future investors.

Take care of your business plan

It is also imperative to take care of your Business Plan (summary and clarity of the evolution projections must be the key words). Do you like to know where your money is going? Business Angels too. Do not forget to specify the path you intend to take and for what purposes you intend to use the funds that will be granted to you. Thus, you will put all the chances on your side during your oral presentation (which also requires synthetic qualities in order to convince quickly and effectively).

Prepare answers to questions from business angels

Similarly, prepare your answers to simple questions, especially those that involve maximum visibility into the viability of your business: what are you bringing new to the market? Is it your product in itself that is innovative or, for example, your way of proceeding from a marketing point of view? What is your capacity for growth in the more or less long term? Will you manage to rent within five years?

Be careful, this upstream work will not be enough. Arm yourself with concrete figures by estimating, among other things, the value of your business. This will allow investors to position themselves on the amount of investment according to the share of capital they will own.

Finally, do not leave anything to chance and carry out a market study to be sure that your project meets a need.

Human relations, the real interest of entrepreneurship

At this stage, you may think that everything is won, but it is only an illusion! The approach in which you engage represents a long-term work, and if the financial dimension proves to be vital, human relations very often take over. To disregard it would strongly compromise the selection of your file, so be subtle!

If your only motivation is money, know that a Business Angel often invests first in an entrepreneur more than a project. Several reasons can push them to invest and in particular to share their experiences/knowledge with more “young” people on projects that they would not have time to deal with themselves. Are you eager to learn from their experiences? Will you listen to these people who will act as mentors to your reason? To get the best from your investors, you must be able to bring out the best in yourself also by proving your skills, your ability to carry out the project…

Many qualities inherent to the project leader are often sought such as positivity, combativeness… but also open-mindedness, the qualities of adaptation that you can demonstrate… which will not be negligible in the eyes of your future potential. shareholders.

Against all odds, Business Angels often tend to abandon the market approach (as solid as it may be), in favor of the entrepreneur’s capacities and individual qualities. And for good reason, business plans rarely go as planned and the ability to adapt is often the key to success.

Modesty is a quality and a skill

Be careful not to overestimate the valuation of your company and not to give yourself an oversized ego either! Overvaluing your company can cause your file to be automatically rejected by certain investors. We must not forget that they also take a risk and that if this risk has little chance of being remunerated, they will tend to favor another file.

It is above all a question of selling your project (in the same way that a salesperson sells his product) taking care not to exceed the limits of reason. In the event that you overstate the prospects for your company’s development, you may not be able to convince them…

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