I’ll be tapping in to another business owner’s knowledge today regarding Angel Investors and Venture Capitalists. Kevin Johansen is the owner of Business Catapult, which works to connect entrepreneurs with the right investors at the right time.
He recently presented on all things angel investors and VCs. He had some great insights that I now pass on to you.
When approaching investors, keep the following recommendations in mind:
Make sure you’re cut out for this. Most entrepreneurs are what Kevin calls “resilient generalists” – people who are generally good at many different things and who are willing to fail until they succeed. He also call them “junkyard dogs” – those that are unwilling to give up.
Set the table for success. Utilize the resources that surround you. Create relationships with potential investors. People who don’t know you are much less likely to invest in your company.
Harness your passion. Angels and VCs want to see that you have passion in your business; but they also look at how you project that passion. As Kevin said, “passion is one thing, crazed passion is scary.”
Know the risks. Every venture has many different kinds of risks, including market risk (will real customers buy and enjoy your product), execution risk (will your plan work), technology risk, and financing risk.
Be honest. Be honest with yourself. Are you the right person to run the business? Are you the right person to guide it to growth? Are you in love with your concept? Do you have the passion to succeed?
Be flexible and realistic. Are you willing to change things if your plan doesn’t work? Do you want to be rich (have little control in your company, but have significant financial gain) or do you want to be king (have a lot of control, less financial gain)?
These recommendations don’t guarantee funding but should lead you towards success.