If you are investing in a site

What do you want to see?

I am pitching a proposal to a potential angel investor for a site. But, I have never done this before so I need some help actually putting the proposal together. And what exactly to put in it, not put in it.

Specifics would really help. How is payment terms usually dealt with? paid back over time? lump sum? What if the site tanks?

Should the potential investor sign a NDA?

Thanks in advance!

 

While I have not dealt specifically with an angel investor, I have received some funding. Most will not sign an NDA, because if someone else comes along with a similar idea but better implementation, they want to keep their options open. They usually get part ownership in return rather than paying it back link a loan. Make sure you have everything ready to pitch your idea. Business plan, marketing plan, market / site research, graphs, expected ROI, etc etc. Dont look like your no prepared. Good luck.

You can find out some more information at http://en.wikipedia.org/wiki/Angel_investor

 

Thanks drig!

Im scared to death putting all this stuff together for this guy and pitching to him.

Im second guessing my site idea a lot now that its coming to pitching it to investors...

 

Dont second guess the idea. Your research should confirm or deny or idea. How much market research have you done?

 

Enough to make myself confident...but this is the first time I have ever dealt with a site of this magnitude.

 

May I ask how you went about finding an investor?

 

Just meeting people through DP. People that know people is really all that it was.

 

ok cool... good luck with it.

 

I'd like to hear how this turns out! Good luck to you and if you have any words of wisdom afterwards please share them!

 

VCs will not sign anything. Prep your elevator pitch and practice it - on your wife, your husband, your dog, your best friend, your worst enemy. Once you have everyone else convinced, you are most likely ready. Be prepared for some harsh questions. Really harsh. I have seen some VCs that try to make it personal to see how you react.

Anyway - getting in front of someone is a fantastic opportunity. Even if this does not work out - you will learn a great deal - good luck!

 

DO YOU FEEL strong about the product ..???? If not do not attempt it NOW.

Make sure you BELIEVE in what you do and the rest will fall into place. I now it sounds so ZIN..but..it really works..I can spot ..people that are not sure in a min..and I never work with them or invest in them.

I work with and invest in people that LIVE IT.. LOVE it..and that what they do.

Hope this helps..

 

Exactly right. Your belief in the product or service you are pitching can make all the difference - which is why the fanatics (who haven't a clue how to do something) often trump the technical people who know exactly how to do something - but don't show the same enthusiasm.

 

Before you pitch it, invest some time in a SOLID and CLEAR business plan. Also, having a 'proof of concept' helps a lot as well.

As for payment, it is usually a product of negotiation between the angel investor(s) and you. It might depend on amount and outlay/expense schedule for the business.