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How to Pitch To a Venture Capitalist vs. an Angel Investor

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A good pitch to a venture capitalist may help improve your chances of selling your products or business. On the other hand, a good pitch to an angel investor could mean higher chances of investment in your startup. If you want to deliver an unbeatable pitch to a VC or angel investor, you must adequately prepare yourself before your presentation. Don’t be nervous, but make sure to give a presentation that’s an interesting, impressive, and persuasive, but also honest. This will help you convince any VC or angel investor to shake hands with you and work with your business.
To help guide you through your pitch, follow these useful tips.

What’s Your Business?

VC’s are really interested in knowing about your business. They want to know what you do, what your future plans are, and what your work ethic is like. They’re also interested to know about your customers and their preferences, so it’s essential for you to add all these points in your presentation and go through them slowly, but in an interesting way to keep them engaged from start to finish.

Tell Them About The Future of Your Business

One thing that’s very important from a VC’s point of view is the future of your business. Tell them what you think about future of your business and show them your plans. VCs will invest only when they’re assured that your business has potential to grow into a long term, successful company. Make them believe that your business will continually expand in future.

Be Authentic to Win Their Trust

Everyone likes to do business with reliable and trustworthy people and for an entrepreneur, winning the trust of VCs and customers is vitally important. You must show VCs your true potential and don’t act like you’re brilliant at everything. Just be yourself while giving your presentation—it will make things a lot easier for you as you won’t have to act or tell lies.

Now, some useful tips for pitching to angel investors:

Talk About Financial Progress

Unlike VCs, angel investors are not really interested in knowing about your business or how you run it. What really matters to them is your financial growth. They want to be assured before investing in your business about the profit they will get by their investments. Talk about business mechanics and your future plans to make investors believe that your business will actually work for them.

Passion Attracts Angel Investors

Angel investors believe more in the passion of people than in their future business plans. If you do research about the top priorities of angel investors, you will find that passion is included in the top three priorities. Make your presentation in such a way that it will capture your sense of passionate about your business and its success. While giving your presentation, be very careful about how you accentuate things related to your progress and financial growth. It will show your passion towards successful business and your dream to build the next big enterprise.

Tell Stories

Angel investors are very different than VCs, as VCs are always looking for authenticity and data, while angel investments are typically more interested in the story of your business. Of course, angel investors also want to make money but they’re attracted greatly by emotional attachments to the business. If a person is emotionally attached to their business, they will definitely do their best to make the most of it and never give up. So, tell your investors about the history of your business, how your family and friends have contributed, and how you have advanced it with some innovative ideas. Start your presentation with an emotional story about your business that will tell them why your brand is very close to your heart.

Pitching your startup company to a VC versus an angel investor requires different strategies and techniques. You need to know what your particular investor is looking for, what their interests are, and how to best present your business or ideas to them. Do your research, follow these tips, and start perfecting your approach today.

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