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Mona cayard How to contact and how to convince business investors


They invest their money in innovative companies. How to contact and how to convince them to invest in your project.
Mona cayard: What is a business angel ?

A business angel is a passionate person of entrepreneurship that invests its money in young companies with innovative concepts. It is usually small and medium enterprises boot with a solid business plan and market positioning with high potential.
In addition to financial support, the business angel also provides the contractor 's expertise and networks.
Where can we find ?

To find the business angels who invest in your company, first look at your surroundings and your personal networks. Then think about your professional networks as the alumni network at your school or university.
Otherwise, you also have the opportunity to get closer to groups of business angels, targeting, depending on your situation, specialized in a particular sector, region networks ...
Three tips for a successful fundraising from business angels

    A clearly defined goal
    It is essential to clearly define the project fundraising. The exact amount you wish to raise and allocate funds. It will be harder to convince investors that the money raised is for an advertising campaign that software development for example.

    Attractive project
    Your project is sufficiently attractive to investors ? The development potential of your company is not everything. Have already achieved the turnover or closed several years provides guarantees to investors. Have a profitable model is even more reassuring for it.

    A fair valuation
    There are three main methods of valuing a business :
    The heritage value that evaluates the value of the company based on the net assets thereof .
    DCF (Discounted Cash Flow) of assessing the value of the company based on future income it will generate.

Method that compares multiple key parameters of your business with those of comparable companies.
So use the assessment method that best fits the characteristics of your business. But do not be too greedy in your recovery !
Go through a business angel instead of a bank has advantages

Business angels usually do not count their time and guide you in developing your company over the long term .
They are also more likely to rely on sophisticated projects that bank would have refused without taking the time to really understand the business.
Keep in mind that finally investing in your company business angels also enjoy tax advantages: reduction of income tax of 18% on the amount invested ISF reduction of 50% of the amount invested. These benefits for business angel could be a bargaining chip for you in the valuation of your business.

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