Angel investment groups tend to quickly dismiss investor presentations that cover complicated products and markets. They tend to lean towards investment opportunities which they easily understand the market – often even if it as a worse valuation or lower expected return than other more complex products or markets.
This is a problem for those more complex technology companies. If this is your company, don’t fret. They key of any angel investor group presentation is NOT to get them to commit to an investment – it is to get them to advance to the due diligence stage. During a due diligence stage they can spend the time necessary to understand the technology and market. I have found that many investors come to love the complexities of a technology during this stage.
So your job as the presenter is to remind them of this. In your opening ask the investment group to accept some assumptions during the presentation. Ask them to assume you are smart, that your technology works, and that your technology will carry out the need in the market you are describing. Then challenge them to test you on these assumptions during due diligence. It goes a long way to lighten the mood of the angel investor group.
This is a problem for those more complex technology companies. If this is your company, don’t fret. They key of any angel investor group presentation is NOT to get them to commit to an investment – it is to get them to advance to the due diligence stage. During a due diligence stage they can spend the time necessary to understand the technology and market. I have found that many investors come to love the complexities of a technology during this stage.
So your job as the presenter is to remind them of this. In your opening ask the investment group to accept some assumptions during the presentation. Ask them to assume you are smart, that your technology works, and that your technology will carry out the need in the market you are describing. Then challenge them to test you on these assumptions during due diligence. It goes a long way to lighten the mood of the angel investor group.



Comments for How To Pitch Complex Technologies To Angels