Small Business Trends Radio

Ten Angel Investor Presentation Tips

Jim Talerico on Attracting Angel Investors

Jim Talerico, Principal at Alternative Capital & Management Resources, Inc. joined us on this episode of Small Business Trends radio to offer tips on how to make your business more attractive to Angel investors to get the investment of capital you need.

As Jim points out, times of tight credit and slow markets are when investors may be turning to private investments for a higher return, instead of turning to the public markets.

You want to make sure your business is the one that the Angel investor invests in. And one crucial area to focus on to ensure your success is the area of presentation – a power presentation to be exact. Jim suggests following the 10, 20, 30 rule. No more than 10 slides, 20 minutes of presentation and a 30 point font.

Jim has outlined the following as key elements of your 10 slide presentation to a potential Angel investor:

  • Define the market need — and your business model. It should illustrate the problem the idea solves and how to make money from it. This is where you capture the Angel’s attention.
  • Highlight the management team — by introducing directors, key employees and advisors. Personalize what makes you unique in the market.
  • Provide an overview of the industry — and the market. Include projected growth rates, the size of your target market, expected market penetrations, etc.
  • Introduce product and service offerings — and validate their effectiveness, the market solution and the customers acceptance.
  • Discuss strategic partners — and examine how they increase your competitive advantage.
  • Summarize the competition –by discussing who the are, their strengths and weaknesses, opportunities within the market and barriers of entry to new competitors.
  • Elaborate on your competitive advantage — by stating what makes you unique and why it’s sustainable.
  • Discuss your sales — and marketing plan.
  • Review financial expectations — by discussing profit margins and what your five year forecast is.
  • Review the funding request — and supply the use of funds, the exit strategy, how we are valuating the owners and the business and what future rounds of investing required – then close strong.

This is just the tip of the iceberg. Jim covered these points and many, many others in a session jam-packed with advice and useful information.

Learn more about how you can attract an Angel investor to your business by listening to Jim’s full interview by clicking the red and yellow player below.

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11 Responses to “Ten Angel Investor Presentation Tips”

  1. Rose Anderson Says:

    “Elaborate on your competitive advantage — by stating what makes you unique and why it’s sustainable. ”

    I find this really a difficult task to do. :(

  2. Chris Says:

    I have to agree with you Rose . . . it is difficult to do that at times isn’t it?

    This show had lots of information contained within it and is a good listen for those working with Angel investors. The 10 detailed presentation tips are a real bonus.

  3. Mike Morrow Says:

    I find Jim’s presentation very enlightening and insightful. Jim brings a commen sense approach to funding with no nonsense steps. This presentation is a must for anyone who is looking for Angel investors ot thinking about it.

  4. Rose Anderson Says:

    Indeed Chris!

  5. Angels Den Says:

    A very succinct list and very useful indeed!

  6. Al Rhoney Says:

    Jim knows what he’s talking about. Keep the presentation short and simple. All investors are looking for a way to ensure the best return on their money. If you design your presentation around Jim’s 10 points and make each point as short and simple as possible, then it’s more likely that an investor will read your presentation in the first place – most never get past the first 60-seconds.

  7. Frank Maloney Says:

    Mr. Talerico’s five tips are right on target. This is a must listen to show for all business owners! Mr. Talerico’s tips are insightful and right on target. He seemed to hit this one right out of the ballpark. I am very glad I listed!

  8. Jules Ringer Says:

    Jim’s presentation is very bottum line and results oriented. Follow his suggestions and you will do well.

  9. Amanda Says:

    Lots of useful info in this interview. I was glad to hear Jim point out that a 20 minute presentation is best. There is nothing worse than hearing someone drone on & on about something. Keep it straight to the point, simple & clean.

  10. Martin Lindeskog Says:

    Great list. I will listen to this show several times before I head back to American, presenting my idea of a new type of meeting place for entrepreneurs and business minded individuals. A place with inspiration from historical meeting places, with a new twist.

  11. Jim Talerico Says:

    A question asked of me after the show was about my opinion of the key aspects of striking a deal with Angels, so I thought I post my response.

    Key aspects of striking a deal with Angel Investors are going to involve: (i) reduction of risk, (ii) equity structuring, (iii) valuation & pricing, (iv) degree of control, and (v) provisions for liquidity.

    When negotiating the term sheet, different deals will have different priorities.

    Fairness and balance between what is important to the Entrepreneur and what is important to Angel is the key to getting the deal done.

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