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How To Work With Angel Groups

Published: 10/25/2007 10:24:42 AM

As part of a continuing series on how to deal with angel groups, today's post is about what happens after the "Big Presentation" in front of the angel group and the group is interested in finding out more about your company.

At the Band of Angels where I'm a member, we schedule a follow-up working lunch that usually lasts about 2 hours.  It is structured so that the company presents a very brief summary of their opportunity and then the angels in attendance start peppering the presenters with specific questions.  The purpose of the "grilling" is to find out where the holes in the company are. 

Experienced angels know that very early stage companies are like swiss cheese - they have lots of holes - and in assessing their interest in investing they have to understand where the weaknesses are and where the strengths are.

As a presenter, it is entirely acceptable to say, "Here's where we're weak and here's where we're strong."  If the angels agree, then you've just banked some credibility.  If they still like your company after this meeting, it is on to some initial due diligence and discussions about deal terms.  I'll leave those topics for future posts.

Don Jones

VentureDeal

 

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Don Jones
CEO, VentureDeal

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