As a startup, one of your biggest challenges is finding angel investors and raising money to fund your business. It's not easy to get individuals to invest their own money in something new, or something that still needs to be tested and proven. How do you get them to trust and have faith in you and in your startup when you still don't have anything to show for it?
It is important to understand why angel investors invest in startups in the first place. Understanding the logic behind their decision would help you focus your pitch on things that resonate with your prospects.
The main reasons why angel investors decide to invest in startups are the following:
Here are more tips on how your startup can attract more angel investors:
Remember that raising capital by approaching angel investors and asking them to trust you is a very difficult process. You'll get more rejections than investments. And it can be shattering. So, keep in mind that the real secret to all of this is persistence.