“What are the key things I should put in an angel investment pitch and/or pitch deck?”
As part of my Leeds Business Podcast here is another FREE business solution, as part of the podcast’s Business Surgery sections, for Business Owners like you who are ‘lonely at the top’.
“What are the key things in an angel investment pitch deck?”
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Here’s the transcript;
[00:00:03] Phil: Before we continue, we’re going to do this week’s business surgery.
[00:00:07] Phil: So anybody who’s been listening recently will know I’m asking our listeners and viewers to send in their business problems which I, and then the guest will give a potential solution to.
[00:00:17] Phil: I’ll give my answer first, which gives Jordan some time to think about stuff.
[00:00:20] Phil: And today’s question actually is very, very relevant. It’s from a lady by the name of Alexa Frost.
[00:00:28] Phil: So tick for the female.
[00:00:29] Phil: What are the key things I should put in an angel investment pitch or pitch deck?
[00:00:34] Phil: Now that’s obviously a huge question. But we’re going to do this really, really top line.
[00:00:38] Phil: So, so my answer, and I get asked this quite a lot.
[00:00:40] Phil: So my answer is, is to answer the following questions.
[00:00:44] Phil: Cause I’m an investor, I’m an angel investor. This is what I want to know.
[00:00:47] Phil: So what’s the pain point that you solve?
[00:00:51] Phil: How do you solve it?
[00:00:53] Phil: Will people pay for it?
[00:00:55] Phil: Will people repeatedly pay for it?
[00:00:58] Phil: Why should they use your solution to the pain point rather than the existing solution they have to the pain point?
[00:01:05] Phil: Um, who’s going to deliver it? So who’s your team?
[00:01:08] Phil: And um, then finally how much money do you want and what does an exit look like?
[00:01:15] Jordan: Yeah.
[00:01:15] Phil: That’s my pretty top, this is my pretty top level what’s in a pitch deck. I’ve probably covered everything you’re going to say Jordan but what what would you say? What would you say or what would you add?
[00:01:24] Jordan: Yeah. So 100 percent agree with all of those points on the pitch deck, absolutely Phil. In addition to that, I would really want to understand their financial projections.
[00:01:33] Jordan: I want to really understand exactly what the business has done so far in terms of what the financials look like and appreciate that not all these opportunities will be revenue generating.
[00:01:47] Jordan: So I’d want to understand the financial projections in terms of, what does it look like in terms of growth?
[00:01:53] Jordan: The other things that I really like to understand as well as I want to understand the story behind the business, because I think that also brings into why they’ve brought this forward.
[00:02:01] Jordan: What was the real problem? The thing that you’ve mentioned right at the beginning of that as well, Phil.
[00:02:06] Jordan: And also, I guess not only the team who’s doing this, but the support you’ve got around you as a business as well. So, that could be partnerships that could be your advisory board, but also, how the money is going to be spent and what the future funding strategy looks like as well?
[00:02:23] Jordan: Because if I’m an angel investor, I’m typically going to be investing in the very early stages of a business. So I’m going to want to know how much more money you’re going to need over the lifecycle of this business or a review of that, to know if I’m going to have to invest again and how much I’m probably going to have to invest again to keep my shareholding.
[00:02:43] Phil: Right. Right. Very good.
[00:02:45] Phil: And the other thing we’ve, I think you’ve alluded to it more than I have, an angel investor looks at the person.
[00:02:53] Phil: So all those could all be ticks. You look at the person and go, the one thing that’s guaranteed is the shit’s going to hit the fan at some point during this journey. Can this person deal with that?
[00:03:02] Phil: Are they the right person?
[00:03:03] Phil: Are they, usually, are they the best front man, or front woman to lead the battle and, and bang the drum?
[00:03:11] Phil: And, and it’s very much about the person as well.
[00:03:13] Phil: I’ve, I’ve seen pitches where I think, that’s quite a good idea, but I look at the person and think, I’m not sure, not sure you, not sure you could either deliver what you’re promising or just you’re the right sort of person.
[00:03:25] Jordan: I would say if I’m being really honest, Phil, I absolutely, I 100 percent agree with you. I’m thinking about some of the opportunities that I’ve invested in and there’s a very well known female founder from Leeds who I have invested in. I invested in her three times in her business.
[00:03:42] Jordan: And I did invest in her, I loved what she was doing. Okay, I saw the real opportunity for her business in the market. But, it was that founder led me to want to invest.
[00:03:55] Jordan: Um, I developed a really good relationship with her and I got to really understand her real strengths, the things that she was great at, but I also got to learn a lot about her, I guess, I don’t want to call them weaknesses because they’re not weaknesses, but I guess things that she wasn’t so good at, or indeed the things that were her worrying factors.
[00:04:13] Jordan: That made me want to invest more in her because I got to see this true person and I’d back that person a hundred times over again and again and again. Okay?
[00:04:24] Jordan: But I also have invested in opportunities where I guess the team have been absolutely phenomenal and I know that it’s a real, I guess, market opportunity, but I’m also, I will also be take a risk in, in, in backing a business that I’m not a hundred percent um, aware of the market as well.
[00:04:44] Jordan: So that’s where I will lean on other people in my networks to invest alongside me to say, I know this industry, I know this sector, and I know that this is a really good opportunity.
[00:04:56] Jordan: So for me, the power of actually working with other angel investors and being a part of a network is super important, particularly if it’s not just that founder that and investing in, it’s actually a sector or industry that you’re not a hundred percent sure in, but this looks like a really good opportunity.
[00:05:13] Phil: Yep. Totally agree with that. Totally agree with that.
[00:05:15] Phil: So Alexa, I hope that answers your question about your pitch deck.
[00:05:18] Phil: So if anybody else has got their business problem, they want me and a future guest to solve, just drop me an email at phil@leedsbusinesspodcast.com. [00:05:26] Phil: And hopefully you’ll get a shout out and you’ll get your problem solved very, very soon.
Each week on the podcast, the Business Surgery allows myself and a guest to offer our solutions to your problems. You can more of them here.
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