2/23/2021 Tip: How to Motivate Angel Investors | Growthink

2/23/2021 Tip: How to Motivate Angel Investors

Today’s Quote

“An investment in knowledge always pays the best interest.”
~ Benjamin Franklin

 

Today’s Tip

Over the past 20+ years helping entrepreneurs raise angel funding, I’ve found angel investors to be motivated by 4 things:

  1. ROI: They think they can get a solid return on investment. Obviously, investing at the earliest stages for a company that eventually goes big can earn the investor their money back and much more. But just beating the next best alternative (i.e., the stock market) is sometimes enough.
  2. Like & Trust: They know, like and trust the entrepreneur. Like with friends and family investments, sometimes angels know and trust the entrepreneurs and want to help them succeed.
  3. Adding Value: They feel they can add real value: many angels have lots of relevant experience that can help the companies they fund, from experience hiring staff to connections with key potential customers or suppliers. If angels can see their involvement adding a lot of value to the company, they might be very interested in investing.
  4. Action: Sometimes the angel wants or likes the action. Simply put, angel investing is exciting. It is generally a higher risk/higher reward version of the public stock markets requiring a more entrepreneurial analysis which is highly intriguing.

 

Today’s Resource

6 Steps to Raise Your First $100,000 from Investors

If you want to raise your first $100,000 (or more), see below to learn my proven formula:

How to Raise Your First $100,000 from Investors <—

As you’ll learn on that page, it’s much easier to raise angel funding than venture capital. 

And you’ll raise funding faster and easier when you follow my step-by-step formula…

6 Steps to Raise $100,000 <—

 

Trivia 

Today’s Question: What popular children’s toy has been used to train management consultants to be more creative?

Previous Question: What airline reportedly saved $40,000 in one year by removing one olive from each of the salads served in First-Class?

Answer: American Airlines

The majority of passengers never even noticed the missing olive, but the airline saved an appreciable sum of money with the cut. 

This is a good lesson for companies struggling with high overhead. Specifically, look for ways to cut costs by removing product or service features/attributes that customers don’t care about. Keep and constantly improve the important attributes.

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