Welcome Entrepreneurs
Raising capital has never been easy. However, angel investors continue to look for good opportunities. Should you consider angel funding to grow your business?
Like all investors, angels look for a good return on invested capital. But unlike a venture capitalist, angels favor early-stage businesses that can benefit from smaller investments (less than $1 million). More importantly, angels are often successful entrepreneurs who can provide the contacts and the experience to help you navigate through the many challenges of building a business.
Applying for a Bay Angels investment starts by creating a user name and password and uploading your relevant business information. Included in the files you upload, you will be asked for an Executive Summary this document should tell a compelling story of how your venture could grow with capital infusion. The following information should help guide you through the process.
Elements of a Strong Business Plan (courtesy of General Catalyst)
We would be honored to review your idea. We believe that winning business plans have common elements. Please make sure your plan covers these areas before you submit it to us.
Napkin Think
Force yourself to summarize your idea on the back of a cocktail napkin. Don’t submit your plan until you have this level of clarity.
Team
Who will occupy the leadership roles in your company, why are they the best players for the task at hand, and how will they go about building an agile, customer-focused culture?
If you believe that an advisory board or governing board will help you grow your dream team, we may be able to help you find the right people.
Pain
What problem are you trying to solve? Prove that the problem exists through testing or valid anecdotal evidence. Of course, solving larger problems, for larger markets, is generally far more attractive than taking on small challenges.
Solution
Why is your solution superior to competitors, who are the key competitors, what differentiator will propel your solution to break through and achieve broad adoption?
Customer Acquisition
Too many early stage businesses fail to fully explain their methods and costs of acquiring customers. Be thorough and clear with your explanation.
Business Model
Show us the near and long-term value of a customer, how you earn revenue, and your growth projections over at least a three-year period.
Capital Efficiency
Early stage ideas are baptized in uncertainties. Your spending needs to be measured against clear milestones; will we be able to rest easy knowing you’ll spend our money as if it were your own?
Financials
We expect to see P/L, cash flow, and a balance sheet over at least a three-year period.
Final Answer?
All businesses are not alike. What else should we know (e.g., timing, disruption in your market, change in competitive landscape, and unexpected availability of talent, etc.)
Words
Fewer words are better; a crisp presentation is a sign of clear thinking.
Sample Docs
Take a look at these samples of early stage funding documents from reputable sources. They may help you as you think through your need for capital.
NVCA model documents
TechStars Model Seed Funding Documents
Y Combinator Series AA Equity Financing Documents
Founder Institute Plain Preferred Term Sheet
Series Seed Financing Documents
Raising capital has never been easy. However, angel investors continue to look for good opportunities. Should you consider angel funding to grow your business?
Like all investors, angels look for a good return on invested capital. But unlike a venture capitalist, angels favor early-stage businesses that can benefit from smaller investments (less than $1 million). More importantly, angels are often successful entrepreneurs who can provide the contacts and the experience to help you navigate through the many challenges of building a business.
Applying for a Bay Angels investment starts by creating a user name and password and uploading your relevant business information. Included in the files you upload, you will be asked for an Executive Summary this document should tell a compelling story of how your venture could grow with capital infusion. The following information should help guide you through the process.
Elements of a Strong Business Plan (courtesy of General Catalyst)
We would be honored to review your idea. We believe that winning business plans have common elements. Please make sure your plan covers these areas before you submit it to us.
Napkin Think
Force yourself to summarize your idea on the back of a cocktail napkin. Don’t submit your plan until you have this level of clarity.
Team
Who will occupy the leadership roles in your company, why are they the best players for the task at hand, and how will they go about building an agile, customer-focused culture?
If you believe that an advisory board or governing board will help you grow your dream team, we may be able to help you find the right people.
Pain
What problem are you trying to solve? Prove that the problem exists through testing or valid anecdotal evidence. Of course, solving larger problems, for larger markets, is generally far more attractive than taking on small challenges.
Solution
Why is your solution superior to competitors, who are the key competitors, what differentiator will propel your solution to break through and achieve broad adoption?
Customer Acquisition
Too many early stage businesses fail to fully explain their methods and costs of acquiring customers. Be thorough and clear with your explanation.
Business Model
Show us the near and long-term value of a customer, how you earn revenue, and your growth projections over at least a three-year period.
Capital Efficiency
Early stage ideas are baptized in uncertainties. Your spending needs to be measured against clear milestones; will we be able to rest easy knowing you’ll spend our money as if it were your own?
Financials
We expect to see P/L, cash flow, and a balance sheet over at least a three-year period.
Final Answer?
All businesses are not alike. What else should we know (e.g., timing, disruption in your market, change in competitive landscape, and unexpected availability of talent, etc.)
Words
Fewer words are better; a crisp presentation is a sign of clear thinking.
Sample Docs
Take a look at these samples of early stage funding documents from reputable sources. They may help you as you think through your need for capital.
NVCA model documents
TechStars Model Seed Funding Documents
Y Combinator Series AA Equity Financing Documents
Founder Institute Plain Preferred Term Sheet
Series Seed Financing Documents