the 5 keys to convince a business angel to invest in your company, Financing

This November 24 opens the Week of Business Angels, 9th edition

. The opportunity for creators to meet these individual investors whose funding will represent a total of approximately 40 million euros in 2014. But how to convince them to bet on a project? The advice of Tanguy de la Fouchardière, executive vice-president of the France Angels network.

1: Sell a business project Carried away by passion, creators often talk about their product or their service in too much detail. “While it is the business project that interests business angels

», stresses Tanguy de la Fourchardière. What problem does the concept address? What is the target? How are we going to make money? … So many questions that he will have to answer in your first “pitch”. Don’t forget either that you will have to convince a company director or a senior manager who will not necessarily know your sector. Use clear language and avoid using too much jargon in your presentation.

2: Bring innovation To be interested in business angels, your project must have an innovative dimension. Without being technically revolutionary, the product or service should bring something new to a market. Either the concept will have no equivalent, or it is the way of the marketer or the broadcaster that will be innovative. “In a sluggish economy, innovation is the promise of strong growth potential continues Tanguy de la Fouchardière. This is an essential criterion for the business angel

“. To reassure him, it will already be necessary to have demonstrated the concept. For example, a website that has generated significant traffic or a product that generates appointments with several distributors. Today, business angels assume the financing of many young innovative companies. They are privileged witnesses of the start-up ecosystem.

3: Show a talent as a “business developer”

It’s not enough to have a good idea. Business angels will judge your ability to seek contracts in a difficult economic environment and competition exacerbated by the crisis. A brilliant engineer who has not demonstrated the commercial know-how to gain market share from a heavy handicap. If you have a technical profile, it will be better to partner with someone with skills in marketing and business development.

4: Present a realistic business plan How to monetize the concept and make the rental activity? The business plan is the best way to model a strategy for conquering a market. It will therefore be necessary to build this file carefully. But beware of presentations that are too ambitious, see “impressionist”. Like any investor, the business angel needs to be reassured by tangible facts (market research, activity figures) and realistic medium-term objectives. “ Focusing on a two-year horizon is sufficient, advises Tanguy de la Fouchardière. At least, at this short deadline, the business plan will be based on operational realities

“.

5: Having the right feeling (or not) Finally, the last element, this one difficult to master: the current will have to pass! Don’t forget that the role of the business angel is not limited to financing the project. Like a mentor, he will accompany you for a few years and, depending on the evolution of the company and market activities, help you to steer or even redirect your strategy. Better to get on well with him. ” The business angel will be a co-entrepreneur alongside the creator. A collaboration based on a relationship of trust

», finished Tanguy de la Fouchardière.
Business Angels Week, November 24 to November 28, 2014

About thirty events in all French regions: presentations of projects seeking funding, conferences, open days, round tables, permanence in the CCIs. For more information: www.semaineba.com

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