The key to raising funding from an angel investor is to establish trust and demonstrate competence. In the process you are able to build a relationship.
You need to have multiple interactions and an ongoing dialog. The interactions lead to familiarity.
When I led angel networks in the early 2000’s I witnessed many an entrepreneur coming to the group and pitching. About ninety percent of them would go away and we would never hear from them again. We had no idea what happened and we would often wonder what became of their startup.
A handful of those startups would come back and give us updates and show progress. Typically over a three to four month period. The investors had enough information to make a decision and they were the ones who raised most of the funding from the group. Those entrepreneurs were the ones who spent enough time to demonstrate their competence and establish a level of trust.
Investors are always looking to learn more about the industry and how to invest. One idea is to share information that helps them in that direction. Bring new information back from a trade show to share with your investor contacts and offer news about the industry that is not readily known to the investors.
You’ll find it easier to gain coffees if you’re bringing new information to the investor.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies