The Startup Journey: Angel Funding

What most people who haven’t raised money from angel groups before don’t know is that even though the group has endorsed you, led due diligence and negotiated the term sheet, it does not mean that anyone will actually give you any money. It is up to each individual investor to evaluate the deal and decide whether or not to write a check. So essentially it is an individual sales process to each and every interested party, which can be relatively quick and easy, or protracted and difficult depending on the investor. We have over a dozen individuals who have participated in our Seed round so you could imagine the time and effort involved in this process.

Coming out the other side though I can very honestly say that it was worth the time and effort. Not only because it forced us to hone and very clearly articulate our value proposition and business plan (I have a slide on just about anything you can imagine), but through the process we have had the privilege of meeting and interacting with some very experienced and wise angels, some of whom have invested and some not.

These individuals were (and are), extremely generous with sharing their knowledge and providing us with advice and direction as we encounter situations we have not dealt with in the past. They have been an invaluable resource. So, lessons learned….

• Know it will take time. Don’t take the eye off of running your business and moving it forward at the same time, hitting milestones along with way will be important proof points.
• Spend this time wisely by refining your business by learning through the process. Continue to improve your story and story telling as you move along.
• Use the process to solicit the experience and wisdom of potential investors, but know that everyone has their own opinion and ultimately it’s your business and you have to make the decisions you think are best.