Types of Financing and Sources of Funding

3.9. Process of Angel Investment Financing

Prepare:

Before approaching angel investors, you must have a well-researched business plan, financials, and a clear understanding of your target market.

Research:

Research the angel investor market to find the right investors for your business. Look for investors who are familiar with your industry and have an interest in your product or service.

Pitch:

Develop a professional pitch to make your case to the angel investor. Explain why your business is a good investment opportunity and why the investor should believe in you.

Negotiate:

Negotiate the terms of the investment with the angel investor. Consider the amount of money being invested, the percentage of ownership, and how the investor will be involved in the business.

Close the deal:

Once an agreement has been reached, complete the legal paperwork necessary to close the deal. This includes a term sheet, a shareholders agreement, and any other documents required by the investor or your business.