Angel Investors, as the name implies, are like angels to new startup businesses. They are often high net worth individuals who provide early-stage capital for companies.
They are often prone to a high degree of risk as they seek a higher return on investment than they will get from the stock market.
If you are considering approaching an angel investor for your startup business in Nigeria, here are some insightful ways to attract investors;
Top 4 Ways To Get Angel Investors Willing To Invest In Nigeria
They include:
1. Identify the right Angel Investors
Identify the angel investors that suit your business—Angels usually have expertise and networks in certain sectors and invest in these areas or business models. When you know the kind of investors you want to approach, you can design your pitch to fit these kinds of investors.
2. Providing an opportunity for value
Angels always look to add value and achieve reasonable returns on a diversified portfolio. They take an interest in different areas of the business either on the board of directors, advisory board, networking, or founder mentorship. Enabling them to add value to your startup gives them the desire to make more money – which means investing more.
3. Get your acts right
Angel investors seek out passionate founders who don’t just talk about their ideas but also lead a business team to yield high returns. You must attract the right people for your business by presenting a strategic execution of your plan.
Many startup companies are always not ready when it comes to pitching to an investor. It is never enough to have a brilliant idea; executing such plans is more important. The best way to achieve that is to go the extra mile in your preparation. This shows your preparedness and helps you navigate the storm of offers you may receive.
4. Make It Count!
Angel investors don’t necessarily need to see a finished product before they are willing to invest. Still, you should avoid going to them with just the words of your mouth.
These investors would naturally be reluctant to release millions of naira to you based on your word of mouth. Be considerate; make an effort even if you have failed many times before. Actions they say speak louder than words. Make it count.
Conclusion
No matter how sweet the deal might look, there is still a high level of risk exposure to the angel investor. Given this, the most crucial thing they look forward to is your exit strategy. A viable exit strategy is what you’d need before money changes hands. Angel investors will be on the lookout for various exit strategies for their investment, as well as a comprehensive risk analysis for each.
Need a loan? Kindly check out this platform that allows you to compare loans from several lenders in minutes. This would help you make the best decision for you.