Touched by an Angel—Here’s How to Attract and Keep Angel Investors
During the later days of the pandemic, startups are finding themselves in a strange situation. Many offer appealing work-from-home or flexible options, meaning they can draw in a strong pool of talent. In turn, they can help combat unemployment by providing relatively pandemic-proof jobs. However, during COVID-19, some investors may be wary of spending their [...]
The post Touched by an Angel—Here’s How to Attract and Keep Angel Investors first appeared on Tekrati and is written by Gia Patterson
]]>Touched by an Angel—Here’s How to Attract and Keep Angel Investors
During the later days of the pandemic, startups are finding themselves in a strange situation. Many offer appealing work-from-home or flexible options, meaning they can draw in a strong pool of talent. In turn, they can help combat unemployment by providing relatively pandemic-proof jobs. However, during COVID-19, some investors may be wary of spending their money on an unproven business concept—some may even simply have less money. While capital investments seem to be staying strong throughout this trying period of history, it has also quite simply never been the easiest task to attract investors.
This is where angel investors can make a large impact on the present and future of a nascent startup. In short, angel investors provide capital to an early-life business, and they frequently receive equity or convertible debt in exchange. Beyond that, they work to help startups in their earliest stages, before most other investors begin to back them. “Angel investors can provide the first bit of funding a startup will ever see. They frequently lend valuable knowledge and expertise to new businesses,” says Zain Jaffer, a tech entrepreneur and the Founder of Zain Ventures. “Without angel investors, many startups would have needed to fight long and hard to progress.”
Thankfully, angel investors are becoming easier to find. In 2020, research out of the University of New Hampshire found that there was an increase in the number of angel investors and the number of investments they made. Further, there was a six percent increase in the dollar amount invested by them. In the year the report came out, there was a grand total of $25.3 billion in angel investments, and the number of active investors totalled 334,680.
Angel investors are a diverse group. Many of them are experienced investors with a good deal of individual wealth. Natfluence noted this can include some famous faces such as Ashton Kutcher and Elon Musk. But the group noted that many are simply accredited investors with at least $200,000 in annual income or a net worth of at least $1 million. Sometimes, friends and family can even be angel investors, if they believe in the product or business their loved one has created.
Bearing in mind that angel investors can hail from almost anywhere, it’s a good idea to know how to attract them. And knowing what signals a smart investment and what signals a red flag to these angels can make all the difference.
Finding a guardian angel
There are myriad services across the internet through which startups can find angel investors. They can begin to search on platforms such as Crunchbase, Microventures, AngelList, Gust Angel Network, and the slew of other options available online. However, having a solid understanding of a business and some promising early data can help aspiring CEOs as they begin to hunt for supporters.
In an Inc article, Heidi Zak—co-founder and CEO of Thirdlove—suggests that startups looking to attract angel investors should aim to become as close as profitable as possible before seeking investments. This helps a startup gather data, and attract investments by showing some early success. Another key way of attracting angel investors is by applying to explain their business in simple terms. Investors like being able to know what issue their prospective investment helps address, and how they aim to do it. “Startups can’t get bogged down with too many ideas, products, or services. Try to narrow your startup’s scope down to a simple, understandable, and achievable idea,” Jaffer says. “Investors want to know exactly what a company is about before they invest time and money.”
It’s also essential to know exactly what angel investors are looking for in a startup. According to a Natfluence article, many investors want to see high-quality returns, so a startup can show their plans for quick but lean scaling. Many also want to see an impact from their investment—they want to invest in companies that aim to solve a problem near and dear to their hearts, or companies that align with their sensibilities.
Beyond that, investors also want to see a solid business plan, a dynamic yet cost-effective team, and strong leadership. They are also more likely to invest in a business that has a clean reputation. According to a GoingVC article, startups in “shady” industries like gambling, and startups with a history of legal issues will effectively scare off funding. In general, it is good practice to keep legal records organized and to be able to answer any questions that investors may have about a startup’s legal past, present, and future.
“It is essential for startups to be able to back their pitches up with numbers while they are on the hunt for angel investors,” Jaffer continues. “But just as important is the ethos under which a new business operates. Hard numbers speak volumes, but trust and faith in the teams behind those numbers often matter more. Ultimately, we invest in people.”
The post Touched by an Angel—Here’s How to Attract and Keep Angel Investors first appeared on Tekrati and is written by Gia Patterson
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5 Great Tips To Give Your Startup Instant Credibility
Starting a new business from scratch can really be the experience of a lifetime. While it can undoubtedly be an exciting phase, it can also be quite challenging and taxing. In fact, going head-to-head against bigger competitors is never easy for a newcomer in the market. You definitely want to quickly establish credibility and build [...]
The post 5 Great Tips To Give Your Startup Instant Credibility first appeared on Tekrati and is written by Gia Patterson
]]>5 Great Tips To Give Your Startup Instant Credibility
Starting a new business from scratch can really be the experience of a lifetime. While it can undoubtedly be an exciting phase, it can also be quite challenging and taxing. In fact, going head-to-head against bigger competitors is never easy for a newcomer in the market. You definitely want to quickly establish credibility and build a relationship of trust with potential investors, customers and vendors.
As a startup owner, how exactly do you do that? Well, there are several proven ways to boost your business reputation. Here are 6 top tips you should keep in mind:
1. Ensure the quality of your product or service
Of course, the first thing you need to do is ensure that you are delivering top quality for the products or services you’re selling.
There’s just no other way about it.
It will be hard, if not impossible, to gain people’s support and loyalty unless they’re satisfied with their purchase. Your sales skills or marketing strategies will never be enough to retain customers, unless they’re impressed with your offerings.
In short, you can only expect to see glowing reviews if you deliver the goods. So be honest and transparent when you get asked about the strengths and weaknesses of your products and services. Never over-promise and underperform for the sake of making a sale.
Forbes puts it this way:
“What do you think happens when the user doesn’t have expectations met? They have a bad user experience. What happens when a client has a bad user experience? Bad word of mouth and reputation.”
2. Improve customer service by training your team members
As hinted at above, excellent customer service is crucial.
Of course, you can’t do it alone. You want the entire team to be on the same page. That’s why you should invest time and resources in training your staff. The goal is to ensure that they are well-equipped when it comes to interacting with customers and resolving their concerns.
Stay consistent and make customer service training an ongoing part of your company’s operations.
The way you handle customer service can really make or break your business.
Ever notice how even the biggest companies instantly lose the public’s confidence when they treat a buyer rudely? That’s something you’d want to avoid, especially as you strive to grow your startup.
When customer service is done right, you boost your brand’s credibility, retain your customers, and even receive referrals all at the same time.
3. Create a strong presence online
These days, most modern buyers use the internet to do their research before making an actual purchase.
That said, you definitely want to have a solid digital presence. You want customers to find useful information when they search your products or services online.
A good website not only helps you connect with your target market. It also gives your business a real sense of legitimacy. You get to develop brand recognition and better online visibility.
In addition, maintaining active social media accounts can be great for your business, too. You get to reach a much larger market when you post regularly on the social media platforms of your choice.
Furthermore, you should also:
- Create a Google Business Profile
- Post blogs on your site
- Implement proper SEO strategies
- Use email marketing
These simple yet effective practices can, in certain ways, contribute to your company’s credibility.
4. Have a professional workplace
A professional space is a must to make a positive impression when you meet with prospective investors and partners. Cleanliness and orderliness should be among your priorities in your office.
Otherwise, startups that can’t yet afford a permanent office can explore the option of renting coworking spaces. You can book these flexible workspaces for a day or a month, depending on your needs and budget. By signing up for coworking membership, you and your team can have a state-of-the-art location where you can work and collaborate.
Check out nearby coworking providers in your area. Compare to see which amenities, packages, and perks are best for you.
5. Use a virtual mailbox
Using a virtual mailbox service can also help you gain people’s trust. A virtual mailbox provider not only receives mail and packages on your behalf. They also allow you to use a prestigious street address for your transactions.
Besides, you’re not allowed to use a PO Box when registering your LLC or opening a bank account. If you don’t have your own office yet, using your home address is out of the question, too. You wouldn’t want to publish your home address in your website, social media, and calling cards.
A virtual mailbox solves all these problems and protects your privacy.
Additionally, you wouldn’t have to miss important business letters even when you’re constantly on the go. Whether you’re on a business trip or a family vacation, the provider will scan all your mail and forward it to you digitally. If necessary, you can ask them to consolidate letters and send them to your location.
This will allow you to respond to legal documents (such as state requirements and lawsuits) with no delay. As a result, your business will not lose its good standing and thus preserve your credibility.
The post 5 Great Tips To Give Your Startup Instant Credibility first appeared on Tekrati and is written by Gia Patterson
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