Episode Spotlight
LIVE callers are encouraged to deliver elevator pitches and
questions to Frank Hennessey, who provides feedback and insight from an
investor’s perspective.
Learn how to talk the talk and walk the walk
as Frank, an angel investor and limited partner in venture capital
funds, discusses the sizzling topic “raising money for your venture.”
Frank’s insights:
Among the angel investors you know and invest with, are there clearly
certain things they look for that make an investment opportunity
“attractive”?
- Experienced and competent management
- Size of market and time to market
- Significant change-altering product or service
Are there unwritten rules of the road (criteria or standards) for angel investing?
Know that your first investment will not be your last.
What are three tips for someone who wants to fund his/her great idea for a business?
- Prepare a business plan
identify size of market
competitive advantage and
financial forecast
- Network with potential investors and be prepared to tell them why they should invest.
- Have skin in the game.
Does it always really mean “NO” when an investor says “NO”?
No – Ask:
- What changes would make it a yes?
- What benchmarks would need to be met?
- When can you meet again, if only for advice and counsel?
Beyond money, what do you and your fellow investors want to gain from your investing activities?
- Making a difference
- Mentoring
- Being involved
What’s the worst move someone can make when they’re asking for money from an angel?
- Lie or misrepresent
- Have unrealistic valuations
What are two business niches you think are particularly “hot” and appealing for angel investors?
Medical devices and technology.