How can you source deals from angel investors using your network?

If you are looking for funding for your startup, you may want to consider angel investors as a potential source of capital. Angel investors are typically wealthy individuals who invest their own money in early-stage ventures, often in exchange for equity or convertible notes. However, finding and attracting angel investors can be challenging, especially if you don't have a strong network or a proven track record. In this article, we will share some tips on how you can source deals from angel investors using your network, and how you can build relationships with them to increase your chances of getting funded.

1 Identify your target angels

The first step to source deals from angel investors is to identify who are the most relevant and interested ones for your startup. You can start by researching online platforms, such as AngelList, Crunchbase, or LinkedIn, where you can find profiles and portfolios of angel investors, as well as the industries, stages, and geographies they focus on. You can also look for angel groups or networks that operate in your region or sector, and check their websites, events, and newsletters for information and opportunities. Once you have a list of potential angels, you can prioritize them based on their fit, reputation, and availability.

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Yousef Emad

Scaling Businesses to New Heights
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Identifying target angel investors is crucial for startup success. Start by understanding your industry and defining specific investor criteria. Network actively at events and online platforms, leveraging investment matching tools. Conduct thorough research on potential investors, examining their history and preferences. Seek recommendations and referrals from mentors, advisors, and your network. Engage with local business communities where investors may have a presence. Crafting a compelling pitch is essential to attract those aligned with your startup's goals. Tailor your approach to each investor, emphasizing how your venture aligns with their interests and investment preferences.

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Kate Yoo McCrery

Small Biz/Startups/VC, Impact, and Equitable Economic Development
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Research thoroughly the startups that angel investor has previously invested in. See who in your network might have connections to those founding teams, and try to talk with those teams. This can be impactful on two fronts: 1) Investors receive hundreds of cold emails and pitches per day. Because of this, they often rely on word of mouth — including from companies in their portfolios. 2) You also want to research if the investor is the right one for you. It’s tempting to go after money no matter what. However, the wrong investor can be a destructive force from within your company. Choose wisely, and ask around about their reputation amongst their portfolio companies before you approach them.

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Arman Liaghat

Scaling Agencies with AI Systems | We’ve made an Extra $100k MRR without Hiring New Employees | This is How👇
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Utilizing LinkedIn and other professional networking platforms. These platforms allow you to connect with angel investors directly or through mutual contacts. By engaging with their content, joining relevant groups, and participating in discussions, you can build a rapport and gain visibility. Additionally, maintaining an updated and professional profile that highlights your venture's value proposition can attract potential investors. The notion that cold outreach is ineffective. While warm introductions through mutual connections are preferable, a well-crafted, personalized cold email or message can also be effective. It should succinctly highlight what makes your venture unique and potentially lucrative for investors.

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Clint Engler

CEO/Principal: CERAC Inc. FL USA..... 🎯 🌐🧿🚩🌎Consortium for Equitable Research, Analysis & Communication
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Leverage your network for warm introductions to relevant angel investors, actively engage in industry events, and showcase your expertise to build trust and credibility, attracting investors seeking high-quality deals. Here's a bonus tip: Provide valuable feedback and introductions within your network, establishing yourself as a reliable resource and enhancing your reputation.

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2 Leverage your existing network

The next step is to leverage your existing network to get introductions or referrals to your target angels. You can ask your friends, family, colleagues, mentors, advisors, or other entrepreneurs who may know or have worked with the angels you are interested in. You can also use social media, such as Twitter, Facebook, or LinkedIn, to engage with them or comment on their posts. However, you should avoid cold emailing or pitching them directly, as they may receive hundreds of such messages every day and ignore them. Instead, you should focus on building rapport and trust with them through your mutual connections, and show them why you and your startup are worth their attention and time.

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3 Provide value and feedback

Another way to source deals from angel investors is to provide value and feedback to them. You can do this by offering your expertise, insights, or assistance on topics or projects that they are involved in or curious about. For example, you can share relevant articles, reports, or data that may interest them, or you can offer to help them with their portfolio companies or other ventures. You can also ask for their advice or feedback on your startup idea, product, or market, and show them how you implement their suggestions or improve your performance. By doing this, you can demonstrate your value proposition, credibility, and potential, as well as build a relationship with them based on mutual respect and appreciation.

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4 Attend events and programs

A fourth tip to source deals from angel investors is to attend events and programs where they are likely to be present or participate. These can include pitch competitions, demo days, hackathons, conferences, workshops, or webinars that are relevant to your industry, stage, or niche. You can also look for accelerator or incubator programs that are sponsored or supported by angel investors or groups, and apply to join them if you meet their criteria and expectations. By attending these events and programs, you can showcase your startup to a wider audience, network with potential angels, and get exposure and feedback from them.

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5 Follow up and update

The last step to source deals from angel investors is to follow up and update them regularly. You should always thank them for their time, interest, or assistance, and ask for their permission to keep in touch with them. You should also send them periodic updates on your progress, achievements, or challenges, and highlight how you are meeting your milestones, goals, or metrics. You should also inform them of any changes, opportunities, or news that may affect your startup or market, and how you are adapting or responding to them. By following up and updating them, you can maintain their interest and engagement, and create a sense of urgency and FOMO (fear of missing out) for them to invest in your startup.

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Tan Kenber Torun

Operations at Elevate Members | Investor
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Create a google sheet for angels you meet with contact info, last contact date, contact interval and run a google apps script connected to your main dashboard to automatically keep them updated.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you source deals from angel investors using your network?

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1 Identify your target angels

2 Leverage your existing network

3 Provide value and feedback

4 Attend events and programs

5 Follow up and update

6 Here’s what else to consider

Financial Management

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