Inside the mind of an angel investor
A couple of things to think about when pitching to an investor.
As published at the Angel Venture Fair, held virtually on October 28, 2020
By Susan Yee, Executive Committee member of the Broad Street Angels, Philadelphia, PA
No offense to all the entrepreneurs out there, but investors get asked for money ALL the time. If you
have the opportunity to pitch to an investor, you’ve increased your chances by a lot! So how can you
convince an investor to risk their money with you. Here are some things to think about:
1. An investor has no obligation to show interest. It’s like having a river of opportunities flowing by
us. Sometimes we jump in and sometimes we sit it out on the riverbank. Investors may have so
many balls in the air, they don’t have time for one more opportunity. It’s easy to pass.
2. Every investor has their own risk appetite and their own return threshold. Questions we ask are
to make us feel comfortable that our money is not at tremendous risk, and that the risk is worth
the return.
3. An investor, who asks questions so they can offer feedback or advice, can give you added value. At
Broad Street Angels, we pride ourselves on our willingness to help our companies whether we
invest or not. We are rooting for your success, and want to help you get there. Your success
increases our investment’s success.
4. Don’t burn bridges when you get a pass. Every investor is willing to invest at different stages of
your company’s growth. Our members pass on companies for many reasons. It could be that
you haven’t proven the need and value of your product or service yet. Or that you haven’t fully
developed your execution strategy. Think of it as a pass ‘for now’, and stay in touch so that
when you are at a stage that your prospective investor is comfortable with, you can see if you
can give updates on your progress and pitch again.
5. Hope is not a strategy. We all know there are risks in investing in a startup. But my favorite
mantra is ‘chance prefers a prepared mind.’ Be prepared to back up your assumptions with
credible information.
6. Keep it simple. Because there is no shortage of investment opportunities, if an investor doesn’t
understand your value right away, they may decide to check email on their phone and you’ve
lost them. We like getting excited when we hear a fantastic new idea. Help us jump on board.
And if this article isn’t enough, go to your friend Google and ask “how to pitch to investors.”
Broad Street Angels is a group of approximately 100 members of the Union League of Philadelphia that
have invested in over 20 companies since 2017 in a wide variety of industries. We are proud of our
ability to be an investor asset, as we often connect our expansive network to our portfolio companies
for new clients or investors. Our members consist of leading experts in legal, financial, sales, retail,
medical device, healthcare, and technology areas among others. To submit your company for funding,
please visit us at https://live-broad-street-angels.pantheonsite.io
About Susan Yee – Sue is an entrepreneur herself having been raised in her own family’s cable television
startup with businesses in internet commerce, technology, commercial real estate and various angel
investments. For more visit: https://activedata.com/our-story/susan-yee/
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