Doha Tweet Up – Oct 2011

How to pitch for funds….and does it hurt?

What choices do I have?

• Family & Friends

• Overdraft• Secured Bank Loan

• Credit Cards• Savings

• Unsecured Bank Loan• Venture Capital

• Angel Equity

Equity Finance

Private individual investment People who have usually made

their money through successful businesses

May offer help Not professional, looking for fun

as well as a return

Angels give you money for a share of your

business.

Venture Capital

Professional Investors give you money + a CEO

in return for a share of the business

Fund larger businesses with very fast growth prospects

Expect a major say in how the business is run Specific milestones must be met to get each

stage of funding Often install their own team to co-run the

business

Which way is best for me?

Can you afford to put up security and possibly lose it?

Do you have sufficient security?

Do you have high-growth potential?

Do you need outside expertise?

Are you prepared to share the profits?

Only do what works for you and meets your comfort

level of risk

Not for everyone!

• Just an idea

• Need short term cash – loan best

• They want to know what’s going on

• Your share diluted

• Can be time-consuming attending pitches

• Stressful (although we do our best)

What ELSE do Angels bring?

• Vote of confidence, not a loan

• Valuable skills

• Experience

• Contacts/credibility

• Another mind for key decisions

• More peace of mind

• Follow-up funding

• Nothing concentrates the mind better…

Prepare to Pitch

• Plan your business, write up your plan• Work out how much money you need and what

share you’re offering• Tell everyone you know you’re raising funding,

even friends of friends may help• Look for opportunities to talk to angel groups or

your bank

Even if nobody ever reads your

plan, it shows you have thought it

through

Whattevvver … get to those 3 things.

• The Idea– Easily explained / Protected / ”Wow, must

Google it”/ Pain/ Sector they know / Barriers

• The Numbers– Valuation reasonable, Share meaningful /

BE horizon / 2x their money / Exit congruent

• The Team– Likeability / Fun / Experience

What not to say to an angel.

• Oh that's wonderful, now I can afford that holiday to the Seychelles! 

• No, I don't believe in making profit, I'm in it for the fun (or "for the children", "for charity" or "for religious reasons")

• 95% of your investment goes towards salaries … MINE!• Oh, YOU wouldn’t understand…• Apart from Google, we have no competition!• If you don’t do it, I can ALWAYS take it to my bank• My Mum thinks this a good idea• ‘Wibble!"

• Scalable• Clever Business Model• Protectable IP• Good ROI • Clear Exit Strategy• Credible / Likeable MD• Balanced and Experienced Team• Interesting and Exciting• Opportunity to Add Value• “World Saving”

What Inspires Angels

Summary

• Not for everyone• It doesn’t have to be expensive – although you can

spend thousands if you want to• It doesn’t have to be painful• Angels are looking FOR reasons to invest – indeed

if they are not investing they are not making money• Come to Angels Den, it’s nice.

www.angelsden.com

Commercial Break!Aged between 18-30 and have ‘entrepreneurial tendencies’? Come to The Bedaya Center in Katara – 2 events coming up of interest:•‘Understanding Enterprise’ – 6 week Btec Course from 1st Nov (2 hours per week)•‘Celebrating ‘Young Entrepreneurs in Q’ Nov 16th – joint Bedaya & QSTP event for Global Entrepreneurship Week