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"\r\n\r\nWhen\u00A0you\u00A0need funding, angel investors can seem like a godsend. However, raising money from angels isn't as easy, or as simple, as it might seem.\r\n\r\nTo learn more, I asked 12 successful founders from\u00A0Young Entrepreneur Council (YEC)\u00A0the following question:\r\nI'm thinking of raising money from angels. What is one thing I\u00A0should\u00A0know?\r\nTheir best answers are below:\r\n\r\n1.\u00A0You'll Face a Lot of Rejection\r\n\r\nThere are hundreds of reasons an angel will reject your pitch, and so many things need to happen simultaneously for somebody to say &amp;quot;yes.&amp;quot;\r\n\r\nDon't tie\u00A0your\u00A0happiness on that day to the positive or negative responses\u00A0you\u00A0get from potential investors, because even with the best idea in the world\u00A0you're going to be bummed after 95 percent of\u00A0your\u00A0meetings. All it takes is one &amp;quot;yes&amp;quot; to get the ball rolling. \u2013\u00A0Travis Steffen,\u00A0MentorMojo\r\n\r\n\r\n\r\n2.\u00A0You\u00A0Should\u00A0Understand What They Want\r\n\r\nAngel investors are typically looking for two things: They are excited about the team and believe that they are the ones who can do it, and they believe in the space and the larger vision for the\u00A0product. Make sure\u00A0you\u00A0find angels who follow accepted angel investing methods.\r\n\r\nThere are many stories of companies giving away way too much equity/control for very little cash. \u2013\u00A0Arjun Arora,\u00A0ReTargeter\r\n\r\n3.\u00A0You\u00A0Should\u00A0Be Prepared for Due Diligence Early\r\n\r\nPoshly's investors include prominent angel syndicates. We found that after successfully pitching, angels like to do thorough due diligence.\r\n\r\nPreparing financial statements, financial projections, referrals and competitive assessments early will help\u00A0you to make the due diligence process as seamless as possible, helping\u00A0you\u00A0to close the deal quickly with investors. \u2013\u00A0Doreen Bloch,\u00A0Poshly Inc.\r\n\r\n4.\u00A0You\u00A0Can and\u00A0Should\u00A0Ask for Their References\r\n\r\nYou should\u00A0be doing as much due diligence on\u00A0your\u00A0angels as they are on\u00A0you. All cash is not equal, and it's important to ask for references and talk to other entrepreneurs who took money from that particular individual.\r\n\r\nIn particular, focus on finding and speaking with people whose companies failed or did not meet expectations -- and ask how supportive (or not) the angel was. \u2013\u00A0Matt Mickiewicz,\u00A0Hired\r\n\r\n5. Angel Networks Aren't That Scary\r\n\r\nAngel networks align dozens of prospective investors to hear pitches from entrepreneurs. These can be tough --\u00A0you're pitching an audience!\r\n\r\nWe had success in our two Angel group pitches. We simply assumed that 80 percent of the room wasn't interested, and focused on the 20 percent that was diligently listening. Wow that subset, and\u00A0you'll have a bigger pool of potential investors. \u2013\u00A0Aaron Schwartz,\u00A0Modify Watches\r\n\r\n6.\u00A0You\u00A0Need to Know\u00A0Your\u00A0Numbers\r\n\r\nKnow how much\u00A0you're raising and at what valuation. Know why\u00A0you\u00A0need that specific amount and when\u00A0you\u00A0forecast the break-even point to occur.\r\n\r\nUnderstand\u00A0your\u00A0revenue model inside and out and be able to poke holes in it yourself. It will make\u00A0you\u00A0more believable and trustworthy then if an investor did it during\u00A0your\u00A0pitch. \u2013\u00A0Logan Lenz,\u00A0Endagon\r\n\r\n7.\u00A0You\u00A0Should\u00A0Seek Counsel, Not Dollars\r\n\r\nWhen\u00A0you\u00A0take money from angels, it\u2019s more important to consider whom\u00A0you\u00A0are taking money from than how much money you\u00A0are raising. Most angel investors are previous business owners or entrepreneurs, too.\r\n\r\nSelect angels based on whose feedback\u00A0you\u00A0value most. Having passionate angels that are willing to give\u00A0you\u00A0counsel and make connections for\u00A0you\u00A0are what helps to drive\u00A0your\u00A0business forward. \u2013\u00A0Arian Radmand,\u00A0CoachUp\r\n\r\n8.\u00A0Your\u00A0Communication Is Key\r\n\r\nYour\u00A0investors are clients. Treat\u00A0your\u00A0fundraising efforts as a sales cycle. Each investor needs nurturing and follow-up, just like\u00A0your sales leads. Diligent communication before, during and after are essential to build investor confidence.\r\n\r\nWe write monthly email updates to current and prospective investors about our progress, explaining where we\u2019re getting traction and what we\u2019ve got planned. \u2013\u00A0Abby Ross,\u00A0ThinkCERCA\r\n\r\n9.\u00A0You\u00A0Should\u00A0Share\u00A0Your\u00A0Mission\r\n\r\nPeople don't buy what\u00A0you\u00A0do, they buy why\u00A0you\u00A0do it. Share the &amp;quot;why&amp;quot; part of\u00A0your\u00A0mission as much as the facts and figures. It goes beyond the pain point\u00A0your\u00A0solving. Share with them why\u00A0you\u00A0want to solve that pain point and what success really means to\u00A0you.\r\n\r\nOf course, validate everything with a sound plan and the facts to back it up. \u2013\u00A0Andrew Thomas,\u00A0SkyBell Technologies, Inc.\r\n\r\n10.\u00A0You\u00A0Should\u00A0Focus on Their Industry Experience\r\n\r\nConcentrate on connecting with angels that are very aware of the industry, sector or vertical\u00A0your\u00A0company or startup is focused in. They will be more likely invest in companies that fit the city or region\u00A0you're in or industry they have previously been successful in or have deep knowledge and experience in. \u2013\u00A0Jason Grill,\u00A0JGrill Media | Sock 101\u00A0\r\n\r\n11.\u00A0You\u00A0Need to Be Able to Connect Personally\r\n\r\nThey have money and experience - great! But does that mean that angel will be a good business partner? A lot of business comes down to interpersonal relations, and many entrepreneurs forget that signing a terms sheet is just the beginning of a relationship.\r\n\r\nIf it's the right angel,\u00A0you're going to spend lots of time together, so make sure they pass the beer test. Can\u00A0you really talk biz over a beer? \u2013\u00A0Matt Hunckler,\u00A0Verge\r\n\r\n12.\u00A0Your\u00A0Honesty Is Important\r\n\r\nBe honest with the potential investor and honest with yourself. Don't hide anything from those looking to give\u00A0you\u00A0money, thinking\u00A0you'll just improve or fix it later. This is grounds for at minimum a constant pit in\u00A0your\u00A0stomach and at maximum the loss of\u00A0your\u00A0business through litigation.\r\n\r\nAlso, be honest with what\u00A0your\u00A0company's value is. Too many entrepreneurs over-value their companies. \u2013\u00A0Andrew Howlett,\u00A0Rain\r\n\r\n"^^<http://www.w3.org/2001/XMLSchema#string>
<http://thenextweb.com/entrepreneur/2014/08/29/12-things-know-raising-money-angel-investors/>