How to find the perfect angel investors

Angel Investors can bring more than just cash to you tarnishing. Many are former founders themselves or have operating experience (in sales, technology, finance, etc.). startups really need.

The key is to be found Angel Investors who wholeheartedly believe in your company and are trying to support you rather than undermine you — otherwise the arrangement just won’t work, says Karoli Hindriks, co-founder and CEO of Jobbatical, an immigration and relocation platform.

Jobbatical recently raised Series A funding, partially out Angel. In our Startup Life newsletter, we asked Karoli for her top tips for finding Angel investors and convince them to come on board.

Decide what you are looking for

If you are a very young company, you might just be looking for your first believer – someone who understands your business and sees its potential. If you are in a slightly later stage and growing quickly, you may be looking for experience and expertise in a specific industry.

In our case, we have Joe Zadeh, the former head of Airbnb Experiences and the company’s ninth employee, on our cap table — he helped set it up high Airbnb from scratch and I knew his experience would be invaluable.

In general, look for Angel who have a vested interest in the success of your company, can provide you with important contacts and will be a good mentor for you.

make your move

Take a look on LinkedIn and identify them Angel you want to approach. Maybe it’s someone you admire in your industry or a founder who has left their company and knows what it’s like to be in your shoes.

Of course, it’s always better to be warmly introduced Angel via someone in your network – check if you have mutual connections with Angel on LinkedIn and ask to be featured — but that’s not always an option for founders. There’s nothing wrong with reaching out to “cold” via a LinkedIn message or email: It’s worked for me in the past.

Don’t ship your pitch deck right away

warm them up high first a bit. When you first reach out (especially coldly), briefly introduce yourself and your company, then tell them you follow their work and think their expertise is what you need. Show them you’ve thought through why they are special interesting for you. (Of course, that means doing your homework and being smart high about the pros and cons of their careers.) Then invite them over for coffee.

The way you approach Angel is much more personal than VCs; You need to get under their skin a little before you can switch to sales mode and introduce them to your business.

Note early red flags

One of the biggest warning signs I’ve seen is when a Angel doesn’t understand justice. Some, perhaps less experienced, charge a huge percentage of equity at the start – some of my first Angel in the very early days of Jobbatical initially wanted such a large stake that we would have given away 40%+ of the company – which can make it impossible for you to raise money later. (Anyone who gives away too much equity at the beginning must give away more and more of their own equity in order to give VCs a meaningful share. Otherwise they will not invest.)

When a Angel Trying to make demands about management, company decisions, or the use of funds in early discussions is also a red flag. If you’re already not aligned with these critical aspects of the business, it doesn’t bode well for the future.

Choose the ones you can trust

As a founder, there are times when you feel so down and so alone. But if you can identify yourself Angel Those who start out with good energy, a calm approach, and a willingness to connect more deeply with you can become your go-to resources when you feel like crying and screaming.

Covid-19 has been quite deadly for us as it is a business helping people move across borders. But mine Angel Investors have been a sounding board for me during these difficult times and helped me find my way through the situation.

Get legal advice

Once a Angel If you’re serious about investing in your business, there are a few things you need to put on the table: the amount of money you need, the percentage of equity you need Angel will take, the investment timeframe and also who has the decision-making power. If possible, consult an attorney to discuss the terms of the Angel‘s investment – especially if you are getting this for the first time Angel Funding – to ensure you protect your business.

Speaking of which… finding business angels

😇 Angel investors find 101. This article describes how to do it FindSpeech and pitch for angel investors.

🔭 What should you look for in an angel investor? Industry experience is important, but so is that quality of care you can bid.

🪥 Brush up on your pitching skills. startups and investors share their advice for pitching angels as an early stage business.

💵 Operator angels form syndicates. Have some new ones originated in Europe – and they are willing to invest.

🙃 Female angels remain in the minority. Just 14% of angels in the UK are women, although they still help launch start-ups (particularly fintechs).

Miriam Partington is Sifted’s DACH correspondent. She also covers the future of work, co-authors Sifted’s Startup Life newsletter and tweets from @mparts_