There are thousands of wealthy individuals who can provide funding. Raising money from these folks require a different approach because their goals are different from those of professional investors.
- Don’t underestimate them. They may care less about financial returns than professional investors, but this doesn’t mean they are suckers.
- Understand their motivation. Where professional investors want to make money and maybe pay back society, many angel investors want to pay back society and maybe make money.
- Enable them to live vicariously. A side benefit that many angels seek is a chance to relive their youth or a romantic past.
- Make your story comprehensible to a spouse. The “investment committee” of an angel is his or her spouse.
- Be a nice person. Whereas a professional might invest in a jerk because “money is money,” an angel won’t.
- Sign up people they know or have heard of. Angel investing is often about socializing as much as profiting.
– Guy Kawasaki, “The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything”, pp. 137-138
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