Angel Investors and Venture Capitalists are two aspects of business that are oftentimes used to fund our businesses and inventions.
Here at Dadepesh, we have a community of VC’s and angel investors looking for the right opportunities to invest. The founder of Dadepesh, an Angel investor, whose main interest is in startups, has a passion for guiding new entrepreneurs.
We will explain the difference between an Angel investor, and a Venture Capitalist.
First you must identify what you are offering to them.
How to write a pitch to an investor:
ITS A SIMPLE FORMAT:
•Company name/ Logo/Brand
•In 3 sentences what is your business about
•Problems your Product/Service solves
•Who is your competition?
•How much money do you need?
•How does your business make money? Who will buy?
•Forecast/ Big picture
Milestones to reach step by step in order
•Your team and their credentials/experience
Here is an example:
Typical sample pitch what must be included?
1.What is my company called and it’s brand/logo?
Funkyfloss
2. What is my business about?
• Introducing a fun and novel way to floss to children and seniors
• Providing hassle-free , non painful flossing experience
• Improving general health by eliminating gum disease
3. Problem it solves:
• Prevents heart disease : heart studies show direct correlation between heart disease and gum disease.
• No more bleeding or cutting with harsh floss. Fear of flossing is eliminated because this floss is bouncy and non invasive
• Not hard or cumbersome to use. Kids and seniors floss more easily.
4. Who is your competition?
All other floss products made the conventional nylon way which is invasive and cumbersome
5. Funding needed: $100,000 to:
• Hire educational reps and promote hygiene school relationships
• Hire reps to improve dental school /doctor relationships
• Manufacture more samples and package them nicely for hotels
• Marketing dollars online
• E-commerce
6.How does it make money? Sales channels:
• Dentists, Cardiologists, and Internists pay for affordable monthly packages to hand out to their patients.
• Revenues also come from direct ongoing sales from Amazon .
• revenues come from hotels selling a bright beautiful package directly from their bathroom.
7. Forecast of future of business:
• Prescription style floss: dentists will prescribe for various needs in the mouth:
• Implants require shaggy floss
• Gum disease requires bumpy
• Tight spaces require extra thin
• Bridgework requires string along
• Currently working on frazzle a new way to clean off harmful periodontal disease bacteria
8. Milestones for your business:
• Marketing on AmazonSeller
• Reps for floss
• Dentists onboard
• Hygiene schools onboard
• Dental schools onboard
• Doctors onboard
• Making new samples
• Hotels onboard
9 .Team: Founders:
Josh: e-commerce sales
Daniela: product development and sales through patients, reps for Dentists and Doctors
Svetlana: Shipping, packaging
**If you are looking for a sales rep, use this next section as well
What would you do as a representative of Funkyfloss?
Earn commission and residual income from the sales of each order and reorders.
Here is a source that matches up your business concept with investors, that believe in you:
Just read through some of the businesses and see how much funding they received.
We recommend them: https://bit.ly/2SbvozL
Angel Investors:
Affluent individual that holds a high net worth and is able to provide for businesses and business start-ups.
This investment is in exchange for partial ownership equity or a debt to be repaid at some point. Angel investors, due to their net worth and capital, are individuals that place their finances as well as their faith into the development of small businesses and new ideas. They will offer business tools, experiences, and advice to entrepreneurs.
Angel investors contribute to a business from the perspective of someone who can offer capital and insight without being actively involved in the functioning and details of the company. They do not intervene with the daily decisions on how the business operates.
Investment capital, and insight are the main aspects of business that are brought to the table by angel investors.
A group of investors not individuals.
Like angel investors, they exist to help businesses in growth and development, but are not limited to just the beginning stages.
A VC can assist through an investment during the starting up point of a business, as well as during an expansion point.
This ability to invest and intervene is characterized solely in venture capitalists and not in angel investors.
Venture capitalists often times utilize venture capital funding, which is funding that is formed through corporate and individual contributions. Venture capitalists aim to invest for the sake of having majority of the money returned and developing the potential of the business.
In venture capitalism, the individuals who invest money are considered to be limited partners. The individuals that manage the funds and are in communication and collaboration with companies are called the general partners, and they are mainly involved in the development of the business.
Unlike angel investors, venture capitalists receive and exhibit more of a say in the company’s decisions, functioning and overall future. Due to this high level of involvement, it is no surprise that the expectations of venture capitalists is higher than that of angel investors. Much of venture capitalism is the expectation and attempt at a business or company returning the money that is invested at the very least. Venture capitalism also differs from angel investing in terms of capital amount being that venture capitalists usually invest a larger sum of money than simple seed funding. Because venture capitalists are investing more money, they often times are more unwilling to invest unless they see genuine growth potential in a company or business.
Ultimately, both angel investors and venture capitalists are important and critical factors for developing businesses. Though they differ in their motivations, investment type, as well as general ideas, they both are useful financial accessories that business should use and consider.
Inspirational success stories:
Must watch!!
The place to shop around for money is in this video: