April 27, 2006

Guy Kawasaki’s Tips on Raising Angel Capital

In a previous blog entry, Guy Kawasaki provides valuable tips and suggestions regarding raising money from angel investors. If you are an entrepreneur seeking to raise money, Guy’s tips will help you to understand the motivations behind an angel’s investment.

I really like the way that Guy presents his content. Most of his suggestions are focused on thinking first about the investor’s needs — not the entrepreneurs. If an entrepreneur can think about the motivations and desires of the angel investor, she can then cater her executive summary, business plan or VideoPitch in such a way that it is appealing to the investor.

Don’t underestimate the importance of the presentation. Present your idea or concept in way that makes it easy for the angel to want to contact you:

  • Prove that you can execute
  • Be realistic — Don’t exaggerate your financial projections or underestimate the difficulty of acquiring new customers
  • Be weary of saying: “All we need is 1% of this quadrillion dollar market…”
  • Be thorough — show that you have spent the time necessary to present a well-though out proposition

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