the 5 keys to convincing a business angel to invest in your business, Financing

The Week of the Business Angels, 9th edition, opens on November 24

† The opportunity for creators to meet these individual investors whose funding will total some 40 million euros in 2014. But how do you convince them to commit to a project? The advice of Tanguy de la Fouchardière, executive vice president of the France Angels network.

1: Sell a business project Driven by passion, makers often tell too much about their product or service. †Although it is the business project that interests business angels

» emphasizes Tanguy de la Fourchardière. What problem does the concept solve? What is the goal? How are we going to make money? … So many questions to be answered in your first “pitch”. Also, don’t forget that you need to convince a business executive or senior executive who doesn’t necessarily know your industry. Use plain language and don’t use too much jargon in your presentation.

2: Bring innovation To interest business angels, your project must have an innovative dimension. Without necessarily being technically revolutionary, the product or service must bring something new to the market. Either the concept has no equivalent, or it is the way of marketing or distribution that will be innovative. †In a sluggish economy, innovation holds the promise of strong growth potential continues Tanguy de la Fouchardière. This is an essential criterion for the business angel

“. To reassure him, it will already be necessary to have demonstrated the concept. For example, a website that generates a lot of traffic or a product that generates appointments with several distributors. Today, business angels take the financing of many young innovative companies They are privileged witnesses to the startup ecosystem.

3: Show a talent as a “business developer”

It’s not enough to have a good idea. Business angels are assessing your ability to seek contracts in a tough economic environment and competition exacerbated by the crisis. A brilliant engineer who has not shown commercial know-how to gain market share will leave with a major handicap. If you have a technical profile, it is better to work with someone with marketing and business development skills.

4: Present a realistic business plan How to monetize the concept and make the activity profitable? The business plan is the best way to model a strategy to conquer a market. It will therefore be necessary to build this file carefully. But beware of presentations that are too ambitious, see “impressionistic”. Like any investor, the business angel needs to be reassured by tangible facts (market research, activity figures) and realistic medium-term goals. † Focusing on a two-year horizon is enough, advises Tanguy de la Fouchardière. On this short deadline, the business plan will at least be based on the operational reality

5: Having the right feeling (or not) Finally the last element, this difficult to master: the current will have to pass! Remember that the business angel’s role is not limited to financing the project. As a mentor, he will guide you for several years and, depending on the evolution of the company and the vagaries of the market, help you manage or even adjust your strategy. It’s better to get along well with him. † The business angel becomes a co-entrepreneur alongside the maker. A collaboration based on a relationship of trust

concludes Tanguy de la Fouchardière.
Week of the Business Angels, November 24 to November 28, 2014

About thirty events in all regions of France: presentations of projects seeking financing, conferences, open days, round tables, permanence in the CCIs. For more information: www.semaineba.com

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