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By Ash Khan | Strategy Director | Ventureprise Acquisitions
Why I Want You To Succeed
I’m writing this guide, short eBook, because I wish greatness for you. Do I wish success for your business? Now that is a different story, dependent on whether it is going to make me money or not.
I know a thing or two about building and investing in Businesses from the ‘ground up’ over the past 14 years. Failing (learning) then finally getting the formula right regardless of the sector or economic state the Business operates in.
Failing is a part of learning… I know this too well having put my heart and soul into certain ventures as they were ‘my babies,’ but then reluctantly accepting defeat, wasting Time | Money | Energy that “this is not going to work”. The point is, you must decide whether your business is a potential whale, or just your ‘baby’ that you are so attached to, you are blinkered to reality.
In the area of startups, foundation and medium enterprise businesses, securing angel investment can be a game-changer. Yet, many founders find themselves struggling to attract the very funding that could propel their businesses forward. I will lean into the harsh realities behind why so many promising businesses fail to secure seed funding, or continue on a stagnated path which will eventually wipe you out. By understanding these brutal truths, you can better prepare yourself to avoid common pitfalls and increase your chances of success.
Brutal Reason 1: The Vision Delusion | When Dreams Don't Translate
Every great startup begins with a vision. But here’s the harsh truth: A grand vision alone won’t get you funding. Investors want to see a clear, actionable plan that outlines how your idea or existing business, desperate for cashflow will transform into a viable business.
Common Pitfalls:
Lack of Clarity: Founders often present vague ideas without clear market strategies.
Unrealistic Projections: Founders present unrealistic potential market size and revenue, alienating investors.
Failure to Articulate Scalability: Investors need to understand how your business can grow with clear short-term milestones of executing the strategy upon receiving seed funding. Rather than presenting a ‘grand vision’ of how your idea is going to change the world.
Examine a startup that failed due to a poorly defined vision. Analyse what went wrong with a ‘fine tooth comb’ and what could have been done differently from a micro level.
Key Takeaway:
Refine your vision to be specific, realistic, and scalable. Practice articulating your business model in a way that resonates with investors.
Brutal Reason 2: Your Team Is Holding You Back
Investors don’t just invest in ideas; they invest in people. A dysfunctional team can be a ‘Major Red Flag’ for angel investors. We are nothing without our team and we can’t do it alone. Of course, the ideas, the vision, the strategy, the desire mainly comes from you. But who is going to be there to provide high level alternative views, collaborate and ultimately release you from ‘stacking the shelves’ for you to continue working on the business? You can’t do it all!
Major Red Flags:
Lack of Experience: Founders without relevant experience can raise doubts about execution capabilities.
Team Conflicts: Visible disagreements or tensions within the team can signal instability. Not selecting your members meticulously can have a detrimental effect on our growth and only takes one bad egg to spread the cancer like wildfire among your core team. Trust me, I’ve been through this myself and it can destroy you as a person when you’re not decisive in making the hard decisions to hire the right people, not just based on skillset, but their belief and mindset to service and deliver on your vision.
Poor Communication: Investors are looking for cohesive teams who are fast in their execution, that can work effectively together in following your roadmap and believing in your vision.
Key Takeaway
Invest in building a strong, experienced team that communicates well and shares a unified vision. A solid team can significantly enhance your credibility and give you that freedom and autonomy to continue doing what you do best, Building Your Business! Rather than having to regularly ‘put out fires’ based on your lacklustre or ‘weak’ approach towards leadership.
You are there to be respected through your actions as a leader in making the hard decisions, not to be liked! This is not another reality tv series popularity contest. You are in it to win it | Remember that!
Those who are truly engrained in your vision and believe in what you are trying to achieve will give you that ‘gut feeling’ of “these individuals are allowing me to be more expressive in pushing on with what I truly enjoy doing by feeling freedom to work on the business growth, rather than having to constantly step in and out of a juggling contest.”
Brutal Reason 3: The Pitching Pitfall | Put Your Money Where Your Mouth Is
Mastering the Art of the Pitch | The pitch is your moment to shine, but many founders stumble during this crucial stage. As an investor myself, when I pitched for investment, part of the pitch was showing my own personal bank statements to the investors, showing them that ‘I Am All In’ with whatever finance I had available from current accounts to savings, including adding physical assets where required as collateral. I would never add my own ‘salary’ into the figures as ultimately it was on me to make it work, so why should they fund my salary? There is a time and place for such conversations to be had, which can be added to the agreement at a time which mutually benefits both parties.
Common Mistakes:
Overcomplicating Presentations: Jargon-heavy pitches confuse rather than clarify.
Failing to Engage: A lack of storytelling can make your pitch forgettable.
Ignoring Investor Feedback: Not adapting your pitch based on audience reactions can be detrimental; Break down examples of both successful and failed pitches; Highlight what worked and what didn’t.
Key Takeaway
Craft a compelling narrative that engages your audience. Focus on storytelling and clear communication to captivate potential investors alongside a clear short-term and long-term milestone projection and how you exactly plan to get there with the funds. Anyone can present fancy bar charts and pie charts from canva or AI powered presentation creation softwares. Ultimately, the numbers don’t lie.
Key Tip – The less questions asked by an angel investor or seed funding panel, the better, as this shows your presentation is on point. Your pitch is near perfect as you have counter thought what questions could be asked and already added such data as part of your pitch deck.
Conclusion
In the competitive landscape of startups, understanding the brutal realities of securing angel investment is essential. By addressing the vision fallacy, team toxicity, and pitching pitfalls, you can increase your chances of attracting the funding you need.
Reflect on your startup and identify areas for improvement. Seek feedback, refine your approach, and prepare to take on the challenge of securing angel investment.
Final Note
The journey of entrepreneurship is filled with never ending challenges. But with resilience and the right preparation, you can navigate the landscape of angel investment successfully. Embrace these truths, learn from your experiences, and keep pushing forward knowing that time is something we can never get back
Whether you are or not seeking angel investment / seed funding, but desperately pushing to get your service out to the market and require scalability help, book yourself into a short, Free consultation call Here
Trust Me - Your Business Will Thank You
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