On The Fundraising Trail: Networking

2010 is still relatively young, yet I feel like I’ve done so much. At the beginning of the year I burst through the door of 2010 with all guns a blazing. I have given my every effort to raise capital. I’ve telephoned, emailed, presented to, and networked with a large number of angel investors and VC’s.

Here are my statistics so far in 2010:

• 41 Angel Groups and VC’s received my executive summary
• 7 Angel Groups and VC’s have turned me down
• 6 Angel Groups accepted me to present to their selection committee
• 3 selection committee’s accepted me to present to their members
• 2 occasions I flew to San Francisco to present to Angel Groups
• 2 investors asked me to contact them in 3 to 6 months (they aren’t in a position to invest today)

The above statistics will continue to grow while I wait to hear for those groups who have not yet responded. I also have had a number of Angel Groups confirming that I have made it past their initial phase and a member is reviewing the company information. If they like what they see it’s onto the next phase.

To explain the typical process for these angel groups: firstly, you submit your executive summary and presentation by whatever means possible. Most accept emails; mail does work, but has less chance of getting to the right person than email does. Some companies use AngelSoft, an online software for accepting deal proposals.

Angel Group’s will typically respond within 2 to 3 weeks. If they like your idea (and the information you provided them) they will either ask for more information or will ask you to present to their selection committee.

The selection committee is usually 3 to 4 professionals (accountants, lawyers, angel group organizer etc). They will listen to your pitch, ask you questions and send you on your merry way. One or two days later you will hear from the selection committee confirming whether you will present to the groups members or not. Regardless of the outcome, you will almost always get feedback on your pitch.

If you were good enough to make it past the selection committee you will be invited to present to the groups members. This is it; you now have a chance to stand before a group of investors. Before presenting to investors, I try to meet in person (or speak over the phone) with the groups organizer. I ask questions such as: how many investors will I be pitching to? What audio and visual equipment do you have? Should I bring my presentation on my computer, CD or flash? What is the format; time to talk, time to answer questions? You may also want to ask whether there are any fees to present. I feel strongly about not paying to pitch.

Before the presentation I practice, practice, practice. You only get one go at this. Even if your ideas is absolutely brilliant, you still need to convince investors that it can make money and you have enough experience and good enough team behind you to make something of your idea.

For me, it’s just a matter of waiting for the right investor to come along. I’ve had plenty of positive feedback; many members of my audience have shown excited about the company, the possibilities of it, and its huge potential. But I’m yet to find the one investor who is willing to put their money where their mouth is.