Angel Investment Network Blog

Here is a list of questions that angels and VC’s will ask startups when deciding whether to invest or not.  If you have answers to these questions up your sleeve, you should be pretty well prepared.

The Idea:

• What does your business do?
• What problem does it solve?

Traction:

A study from Searchmetrics has revealed just how important social media signals are to a strong SEO ranking, with well-positioned URLs almost always having a high number of Likes, shares, tweets and +1s.

This infographic from Wishpond collects data from a Social Media Examiner study into one, easy-to-read visual, looking at the top benefits achieved by social media by more than 3,000 marketers in 2013.

Highlights include:

A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well. See how funding works in this infographic:

Here are 20 tips to bootstrap your start-up and drive your business forward without spending a lot of money:

1. Do customer surveys to find out about their level of interest in your product/service, how they would use it, what features they might like to see and how much they would consider paying for it.
2. Raise money from family and friends.  Family and friends can be a great source for bootstrap financing. They have a vested interest in your personal success, and are more likely to take a chance on you than a bank or angel investor.
3. Approach industry experts to get feedback and endorsements. Do they like your product?  Would they use it?  Is it better than the existing competitors?
4. Build yourself a website.  There are loads of free and easy-to-use website builders like https://www.wix.com/ or https://www.moonfruit.com/.
5. Offer people sweat equity in return for helping get the business off the ground.
6. Set up a “coming soon” landing page and start collecting email addresses from people who’d be interested in joining your site when it launches.
7. Pull in favors from friends or colleagues who may be able to help.  Do you know a graphic designer who could do a mockup of your website?  Do you know someone who has a contact at the retailer you’re desperately trying to get into?  Using your contacts could be key in driving the business forward.
8. Start building the right team as this is one of the main factors that investors will take into consideration when deciding whether to back you. Even if you can’t start paying them yet, you can have them on standby to join when you manage to raise some proper funding.
9. Record a demo video of your product or service. This is a really effective way to showcase your business to customers and investors. You could either record one yourself or use a service like https://www.dunktank.co/ or https://explainify.com/.
10. Hire interns and students. This is is a win/win for everyone. You get support at little to no cost. The intern/student gains valuable experience working at a startup where they’ll have more influence than they would at a larger company.
11. Contact retailers to try to get some letters of intent or even pre-orders. This is a great way to prove there is interest in your product.
12. Do some research to find out what sort of branding you’re going to use. This might just involve finding some other companies or websites you like the look of, so investors get an idea of what image you’re going for. Or you could use a site like Crowdspring (https://www.crowdspring.com/) to get a logo designed.
13. Set up accounts and groups on Twitter, Facebook, Linkedin, Pinterest or any other social media sites you think your target audience use.  This is a great way to start engaging with potential customers and industry influencers.
14. Begin building partnerships that will allow you to grow your business faster through joint ventures, cross-promotion, referrals, content marketing, etc.
15. Go to networking events to meet as many people as possible that are involved in your industry. This is a great way to meet potential clients, retailers, distributors, marketers, etc.
16. Outsource jobs and use freelancers to get work done without having to take on employees.
17. Start tracking stats as soon as possible. The sooner you establish your KPI’s (key performance indicators), the sooner you will be able to calculate your growth rate and determine which factors (like a new marketing strategy or website adjustment) have a positive impact on those KPIs.
18. Develop your marketing strategy (and maybe even test it to determine your cost per acquisition and which marketing channels are the most effective).
19. Assemble a team of expert advisors that you can approach for critical input and advice when you need it.  It’s important to remember: You don’t have to do it alone!
20. Don’t get an office – Google and Microsoft started in garages, so there’s no shame in it.

Clever bootstrapping is proof that you have the most important elements of company building: passion, dedication, resourcefulness, focus and vision, which will make you and your company much more attractive to angel investors and venture capitalists. So make sure you spend wisely! Be sure also to hire reputable payment processing companies for your business.

What have I forgotten?  Let me know your top bootstrapping tips and strategies. read more

According to a recent report from Dow Jones VentureSource, German seed investor High-Tech Gründerfonds (HTGF) is the most active investor in European companies – with 16 completed deals in the first quarter of 2013.  Danish VC firm SEED Capital with 12 completed deals in the same period.

The UK retained its position as the favoured destination for equity financing in Europe with a 34% share of all investment into European VC-backed companies.

While European venture capital declined in the first three months of the year – dipping 13 per cent in the number of funds and five per cent in amount raised from the previous quarter – VC investment into European companies experienced a slight increase. read more

Today it’s not enough for small businesses to solely use social media for their immediate marketing needs.  They need to sew it through the fabric of their entire business strategies – from customer service to collecting and prioritizing ideas – in order to derive the most value.

This infographic from Get Satisfaction shows how small businesses can go beyond just marketing by using well-set social media channels to respond immediately, 24/7, to customer concerns while projecting a more personal approach to customer service. read more

Angel Investment Network were delighted to be involved as both judges and mentors at the first ever Imperial Startup Weekend, which saw 65 budding Entrepreneurs assemble in the basement of Skempton Building, Imperial College. A total of 10 teams worked on new business ideas for 54 hours in a frenzy of customer validation, business model planning, coding and design.

Here is some info from Stuart Brameld, Event Director about the companies and teams at the event:

1. Giglist (Winners)

Team Members: Tomasz Nguyen, Phil Thomas, Sahil Chugani read more

Dubbed as the ‘Asian Century’, the economic growth of Asia is seeing no signs of distress. China and India are not the only stars of this sparkling economic skyscape but smaller economies are emerging as the rising starlets. The economic might of Asia is growing in mammoth proportion; it is both a destination and a source of investments. Hence, you can also Interim Home Healthcare Franchise  to promote economic growth. The upward trajectory of Asian economy is unperturbed by the turbulence in the west and this is evident from the increased FDI inflows into the Asian economies. Closer scrutiny of the FDI inflows reveals that China is loosing steam and ASEAN is closing in on the race for FDI. South East Asia’s share of the global FDI inflow has risen to 7.6% almost close to the 8.1% share of China, the largest FDI recipient globally. read more

This infographic provides information for online sales and marketing tactics. It shows the different buttons on an internet shopping site and shows which messages and buttons produce more sales and which negatively effect sales. It shows the different tactics such as wording and button colour.

 that online sales sites use in order to produce the most sales on their sites.

Jeff Clavier walks through his thinking when a startup pitches him for funding.

From Oriental dipping sauces to a car parking space lettings agency, from a sausage manufacturing company to ice cream for dogs – the most recent series (can you believe it was the tenth?) of Dragons’ Den has continued to show that where there’s tat, there’s brass.

Or so the Dragons – Hilary Devey, Duncan Bannatyne. Deborah Meaden, Theo Paphitis and Peter Jones – hope, anyway.

Freshly updated to reflect all of the investments made right up to the wire of last night’s final episode, our lovely infographic has all the DD stats you could ever hope for. read more

This is a great infographic from the guys at Startup Weekend, illustrating the locations of the leading accelerator and incubator programs from around the world in 2012!

SMEs in the UK, US, Germany, France, Spain and the Netherlands were, overall, confident of a successful year ahead for their businesses. The infographic revealed that 48% of SMEs felt confident, as opposed to 27% who were inclined to be more pessimistic.

High percentages – 75% – were hopeful about their businesses not making any redundancies in the forthcoming year. There was a similar positive feeling about recruitment also.

Around a third of SMEs admitted to losing sleep because of worrying about financial issues. But, a similar percentage saw the difficult financial times as a reason to work harder and to become more efficient – and so consequently enable a better chance of future success. read more

So you want to write a business plan, but you’re having a hard time understanding the components of a proper plan? Here is a simple to understand infographic.

Click on the infographic to view the enlarged version.

What are your top business plan tips?

This infographic shows how to best leverage platforms such as Twitter, Facebook, LinkedIn, Google+ and Pinterest, as well as blogs and video.

Source: https://www.thewholebraingroup.com/sensible-social-media-checklist-v20-infographic/