I am leaving today for Orange County, CA once again. I have meetings scheduled this week with two clients, one venture capital firm and one angel investor group in Southern California. Regarding the later two, we are working on securing capital funding for several business clients of our firm.When heading out to the East or West coast, I find it interesting how different the investment community cultures are from the culture of the Midwest. When presenting to most Midwest angel investor groups, the presentation goes something like this:
1. Raise excitement about the business concept
2. Get buy-in from investors on the market opportunity and your business team's ability to meet that opportunity with the capital to be raised
3. Present the investment opportunity
I find that Midwest investors in general want to be excited about the business strategy and opportunity before hearing anything about the investment opportunity.
Presentations to angel investor groups on the coasts are often inverted from this.
1. Show that this is a respectable investment opportunity (ROI, Type of Equity, Exit Strategy...)
2. If investment opportunity is worth considering, then raise excitement about strategy and market opportunity
3. Prove that the business team can meet market needs
Know who you are talking to. Before making the presentation, ask a director of the group how they typically like to see deals. Find out who the potential investors are. This is a sale, just like any other type of sale - so, know your customer.
~~~~~~~
See also:
A Private Equity Attorney
Angel Investors - Supply vs. Demand
US Private Equity - Requires Self Awareness
Funding Law - Buyer's Market
Funding Law - Investing in Midwest Technology Companies
Angels are Still Investing
Private Equity VIII – Environment for Buyers and Sellers
Private Equity in 2009 – Don’t Give Up
Private Equity VII – More on Angel Investors
Private Equity V - Raising Capital and Not Telling Lies
Private Equity IV - Angel Investors Get Picky
Private Equity III
Private Equity II
Private Equity I
