Who are angel investors actually?
You probably think they are some people with huge amounts of money that are just sitting in their big chairs and thinking about whether they should give away some of their money.
Well, they kind of are.
Just that they are not.
What’s not fitting in the picture?
Angel investors are former entrepreneurs. You know that time when you were founding a startup and you didn’t know whether you should get going with your project? You weren’t sure whether you will lose or get the money from the project. You didn’t even have enough money to start the whole thing. That is you now?
Well, angel investors are those people who have already been in your shoes.
They didn’t have the team of people. They didn’t have enough money. As well as you are now, they were also afraid of starting the whole thing and risking everything.
They had a wish. A desire. A passion to create.
As well as you have now.
How to approach angel investors then?
By showing who you really are!
You are not going to get the funding unless you are transparent. You have to show the whole idea. To make a sort of presentation of your project. But to show good as well as bad sides of it. No business is perfect. Not every business is scalable. And angel investors as former successful entrepreneurs know that. It would be good for you to consider all of your options and to look at the things from various points of view. That is one of the crucial things an angel investor is going to see in you. What else can an angel investor see?
- Your desire
- The purpose of your project
- Your readiness to take risks
- But also your awareness of the crucial critical points of your venture
What should you think of before going to an angel investor asking for a loan?
You should take more things into consideration.
First, you’ll have to build up a team around your idea. It is not enough that you have an idea of the project since you cannot do it yourself. And an angel investor knows it. If you gather a passionate team of people that are gathered around an idea. You have finished the half of the job.
And why is that?
Because angel investors, such as Casper Ravn-Sørensen, know that mere ideas don’t change the world. It’s the people. The people’s drive and passion. And people in the team are the strongest group that exists. If you show that people in your team together with you, are ready to take risks together. If you show that the idea that you work for is the most important to you – an angel investor will consider you as a possibility. It is because in that way, you will show that you won’t give up on the project. You will show that you and your team are ready for the winning. But also aware of all the hard times that are to come.
How will an angel investor test you?
Of course, every angel investor has a certain idea on how to test young entrepreneurs. They have to know whether you are aware of what you are going into. If they are to invest money in your project, they have to get to know you as a person. Whether you are reliable and whether you and your team are strong enough to face the difficulties. Maybe he will be indifferent, just to test whether you are passionate enough about what you are saying. Maybe he will show signs of refusal, just to see whether you are ready to fight for what you wish.
And what is Casper Ravn-Sørensen’s method?
As an entrepreneur, it is also about asking the important questions to yourself and to your team. It is about communicating with the existing concept you have in your minds before you will ask for an investment from someone. When some young entrepreneur-to-be comes to my office, the questions I pose are usually rather simple. But I want from you to examine various things before you would come to me. I wouldn’t be a fan of your presentation if you had just learned a list of things by heart, I want you and your team to feel the idea with your hearts. If I see and feel that in you, then you have captured my full attention.
So, if you think that you want to try yourself and your idea of a project, feel free to contact us and book a meeting. Read Casper Ravn-Sørensen’s blog for more information on him and his ideas. And before all of that – just believe in yourself.