Networking is always the best method to build your universe of contacts. Historically this was done by attending investor pitches, meeting other CEOs and Founders and working with consultants to target specific categories and profiles of investor. However, with COVID and more technology and social networks there is an increase in cold outreach through platforms like LinkedIn, Angel.co, angel syndicates and other platforms that allow you to publish your profile.
Read more: How to Find Outside Investors and What Does It Take?
Typically, you need a 20 to 40-page plan that discussed each of the five key areas of the business, which are marketing, sales, product development, finance and operations (delivery). You will need this read by an objective and experienced expert for feedback.
It is highly likely that you are both too close and not experienced enough (as an investor) to know how good the quality of this plan can be ranked.
Read more: What kind of business plan do you need to attract outside investors?
Well, this is art more than science, so you will need an expert in raising capital to review the materials you have prepared and tell you your materials are of sufficient quality. These materials should include the following, even at the seed stage, even though the bar for quality and completeness will not be as high:
- Pitch deck
- Business plan with market research, competitive intelligence and the business model you have designed to be unique in the marketplace
Read more: How do you know you are ready to approach outside investors to raise capital?
This is a big question and the deviation is very large depending on many circumstances. However, I will give some baseline information to help you prepare for the negotiation of terms. Your mileage will certainly vary.
Angel investors, early on, will not get anything except a promise of equity later via a convertible note or SAFE note. Their ownership stake is too small to have any real control, and the legal structure of a note gives them no real voting authority at annual stockholder meetings.
Read more: Terms that are Reasonable to Provide Angels and Venture Capitalists