Angel investors are in many ways vital to the success of a startup or entrepreneur's idea. They can inject much needed seed or early stage funding to catalyze growth and success for founders and entrepreneurs. Having angel backing can set you up for future venture capital funding as well.
However, finding and dealing with angel investors can prove a bit challenging. There are less than 300 angel investors actively investing in startups with only about 60,000 investments happening per year. In fact, angels fund less than a percent of all startups.
With that being said, angel investors do play a major role in startup growth. They actively seek founders and entrepreneurs with marketable products and services previously untested. This makes them a more attainable funding option than banks or small business lenders.
Angel Investors love the opportunity their investments can provide. For founders and entrepreneurs, partnering with an angel has monetary benefits, as well as serving up unprecedented knowledge and industry networking opportunities
The following serves as your roadmap to finding and dealing with angel investors to help bring your vision to life.
How to Find Your Angel
Finding an Angel Investor may be a little easier than you think. There are a number of places online and in your community to draw angel investor attention from. From online angel platforms to conferences, here are a few places to find your first angel:
- Online Angels: Are you spending countless hours on LinkedIn sending potential angel investors messages in hopes of starting a conversation about your startup? This is common, and not a horrible strategy, but there is an easier way. Online sites, like the Angel Investment Network or Gust can help you land an angel easier.
- Angel Events: You can take your angel investor search offline as well. There are plenty of angel events around the U.S. to help you make a meaningful connection with an investor as passionate about your startup or entrepreneurial endeavor as you. Startup Grind and the Angel Capital Association Summit (ACA) are all great events to start a conversation about your startup.
Dealing with Angel Investors
After you have made a few angel connections, it is time to start the conversation. One faux pa of dealing with angel investors is to cold pitch them in a conference elevator, at a coffee shop, or via long email. This is borderline stalking, and not a great way to attract attention for your startup.
There is a bit of tact involved in pitching your startup and asking for funding. Before you even start looking for an angel, have a pitch strategy ready to go, because just rambling on about your product or service, and how great it is, won't get the deal done.
A few pitch-ready ideas to have at the ready when dealing with an angel investor include:
Your unique story, because angels love a great entrepreneurial story that inspires them. Engaging an angel from the heart is the best way to get them interested.
A high-level of confidence to get the job done, since angels are entrusting you with thousands of dollars to be successful. They want to know you are the founder that will leverage their investment for the best possible ROI.
Current profits and future projections with the backing an angel investor can provide. Be sure to have an exact number in mind that you know will have an impact on your startup. An exact figure will show an angel you have done your homework.
Concise information that doesn't beat around the bush, because angel investors are busy and don't have time to listen to a two-hour pitch. A pitch should be no longer than 20 minutes, and that is pushing it.
Be Prepared for an Angel Interrogation
Maybe interrogation is a bit over-the-top, but as a founder or entrepreneur, you should be ready to field the borage of questions an angel will ask. Questioning can be about marketing plans, financial information, and even questions about you and your team.
Financial questions include:
How much capital do you need, and how long do you expect it to last?
What are your financial projections and growth rate for the next three to five years?
What are the major costs involved with bringing your product or service to market?
Is there any potential unforeseen expenses involving production?
What are the projected gross margins with this investment?
Startup team questions include:
Who are the main founders, partners, and team members?
How many employees are there (HQ and outsourced)?
What is the combined experience of the team (tech, industries, etc.)?
Are their team growth needs in the coming two years?
Why are you a good founder?
What additional skills are needed to grow the team?
Marketing questions include:
What is the marketing and PR strategy?
Is there a social media strategy in place?
What are the analytics of these strategies?
What is the cost of the customer acquisition?
How will you boost marketing and PR with the investment?
What is the current customer lifetime value?
Don't be offended by the direct nature of these types of questions. An angel investor is exposed to a variety of risks when investing in a startup. They are simply trying to mitigate these risks as quickly as possible to move the potential partnership forward in an expedited, powerful way.
What Does an Angel Investor Want?
Landing an angel investor provides you with a stellar opportunity to fund your startup to success. However, angel funding isn't free. When partnering with an angel, it is important to know that the investment has a few strings attached.
For example, an angel investor may want equity in the company. This could be a high percentage, or a meager one, depending on the agreement you have with your angel.
Giving up equity in your startup means that you are no longer the sole decision maker. Some angels are hands-off investors, but some want to be involved in some way to ensure they are going to get a satisfactory ROI.
Having an involved angel isn't necessarily a bad thing. They have the industry knowledge and the connections that can facilitate growth much faster than if you are making decisions alone. The negotiation stage is important, so be sure to know that angel investments are certainly not free.
Find Your Angel Today
Finding and dealing with angel investors is an exciting moment for any founder or entrepreneur. Just be sure to do it the right way. From being pitch ready to knowing what angels will ask, have a strategy in place to land your first angel with ease. Have you had success in getting angel investor funding? Tell us your secrets!
Gender divisions in sports have primarily served to keep women out of what has always been believed to be a male domain. The idea of women participating alongside men has been regarded with contempt under the belief that women were made physically inferior.
Within their own division, women have reached new heights, received accolades for outstanding physical performance and endurance, and have proven themselves to be as capable of athletic excellence as men. In spite of women's collective fight to be recognized as equals to their male counterparts, female athletes must now prove their womanhood in order to compete alongside their own gender.
That has been the reality for Caster Semenya, a South African Olympic champion, who has been at the center of the latest gender discrimination debate across the world. After crushing her competition in the women's 800-meter dash in 2016, Semenya was subjected to scrutiny from her peers based upon her physical appearance, calling her gender into question. Despite setting a new national record for South Africa and attaining the title of fifth fastest woman in Olympic history, Semenya's success was quickly brushed aside as she became a spectacle for all the wrong reasons.
Semenya's gender became a hot topic among reporters as the Olympic champion was subjected to sex testing by the International Association of Athletics Federations (IAAF). According to Ruth Padawer from the New York Times, Semenya was forced to undergo relentless examination by gender experts to determine whether or not she was woman enough to compete as one. While the IAAF has never released the results of their testing, that did not stop the media from making irreverent speculations about the athlete's gender.
Moments after winning the Berlin World Athletics Championship in 2009, Semenya was faced with immediate backlash from fellow runners. Elisa Cusma who suffered a whopping defeat after finishing in sixth place, felt as though Semenya was too masculine to compete in a women's race. Cusma stated, "These kind of people should not run with us. For me, she is not a woman. She's a man." While her statement proved insensitive enough, her perspective was acknowledged and appeared to be a mutually belief among the other white female competitors.
Fast forward to 2018, the IAAF issued new Eligibility Regulations for Female Classification (Athlete with Differences of Sexual Development) that apply to events from 400m to the mile, including 400m hurdles races, 800m, and 1500m. The regulations created by the IAAF state that an athlete must be recognized at law as either female or intersex, she must reduce her testosterone level to below 5 nmol/L continuously for the duration of six months, and she must maintain her testosterone levels to remain below 5 nmol/L during and after competing so long as she wishes to be eligible to compete in any future events. It is believed that these new rules have been put into effect to specifically target Semenya given her history of being the most recent athlete to face this sort of discrimination.
With these regulations put into effect, in combination with the lack of information about whether or not Semenya is biologically a female of male, society has seemed to come to the conclusion that Semenya is intersex, meaning she was born with any variation of characteristics, chromosomes, gonads, sex hormones, or genitals. After her initial testing, there had been alleged leaks to media outlets such as Australia's Daily Telegraph newspaper which stated that Semenya's results proved that her testosterone levels were too high. This information, while not credible, has been widely accepted as fact. Whether or not Semenya is intersex, society appears to be missing the point that no one is entitled to this information. Running off their newfound acceptance that the Olympic champion is intersex, it calls into question whether her elevated levels of testosterone makes her a man.
The IAAF published a study concluding that higher levels of testosterone do, in fact, contribute to the level of performance in track and field. However, higher testosterone levels have never been the sole determining factor for sex or gender. There are conditions that affect women, such as PCOS, in which the ovaries produce extra amounts of testosterone. However, those women never have their womanhood called into question, nor should they—and neither should Semenya.
Every aspect of the issue surrounding Semenya's body has been deplorable, to say the least. However, there has not been enough recognition as to how invasive and degrading sex testing actually is. For any woman, at any age, to have her body forcibly examined and studied like a science project by "experts" is humiliating and unethical. Under no circumstances have Semenya's health or well-being been considered upon discovering that her body allegedly produces an excessive amount of testosterone. For the sake of an organization, for the comfort of white female athletes who felt as though Semenya's gender was an unfair advantage against them, Semenya and other women like her, must undergo hormone treatment to reduce their performance to that of which women are expected to perform at. Yet some women within the athletic community are unphased by this direct attempt to further prove women as inferior athletes.
As difficult as this global invasion of privacy has been for the athlete, the humiliation and sense of violation is felt by her people in South Africa. Writer and activist, Kari, reported that Semenya has had the country's undying support since her first global appearance in 2009. Even after the IAAF released their new regulations, South Africans have refuted their accusations. Kari stated, "The Minister of Sports and Recreation and the Africa National Congress, South Africa's ruling party labeled the decision as anti-sport, racist, and homophobic." It is no secret that the build and appearance of Black women have always been met with racist and sexist commentary. Because Black women have never managed to fit into the European standard of beauty catered to and in favor of white women, the accusations of Semenya appearing too masculine were unsurprising.
Despite the countless injustices Semenya has faced over the years, she remains as determined as ever to return to track and field and compete amongst women as the woman she is. Her fight against the IAAF's regulations continues as the Olympic champion has been receiving and outpour of support in wake of the Association's decision. Semenya is determined to run again, win again, and set new and inclusive standards for women's sports.