David Drake
Angel investors make direct investments to private firms using disposable income. In most cases, their contributions also include knowledge and expertise in the deals to add value.
Angel investing is a better financing option in developing Alzheimer’s Disease (AD) cure because it provides funding as a way of giving back to the community. Finding the cure for AD will save 44 million lives across the world and a fundraising drive towards this would most likely capture the attention of angel investors.
Even so, getting angel investors to finance an AD cure project is not necessarily easy. It requires strategy and patience. Here are 5 tips to get angel investors to fund AD cure:
1.Make Realistic Projections
One way of attracting investors is to show what they can expect to get as returns. To do this, the value of the company seeking funds and the projected rate of return are necessary. These should be realistic numbers as most angel investors will see through them. Where an entrepreneur does not have adequate financial literacy in business valuation and return projection, it is advisable to seek help from financial advisers or experts and ensure valuation of company can be proven.
2.Build a Strong Team and Long-term Relationship
Angels prefer to invest in business relationships rather than big ideas, hence they are more attracted to businesses or projects with strong teams. Providing proof that a firm has experts on Alzheimer’s Disease and dedicated staff working is critical. Entrepreneurs in this space need to pick their team members wisely and ensure they believe in the project. The team should create strong, long-term relationships among themselves and with other stakeholders. When there is diversity in the team, it is easy for angel investors to join.
3.Have a Solid and Precise Business Plan
When using this conventional strategy, angel investors need a solid and precise business plan. Companies need to provide all information regarding AD, including its history, available treatment options, projected number of AD patients as well as market base, and the development stage of AD cure at this point. Also, describe what makes your project unique, state the amount of money you require and for what purpose. Remember to include an exit strategy in your business plan so angel investors know how to leave the business. Prepare your business plan in a professional and organized manner. In addition, prepare an A+ business pitch for potential angel investors when you meet them.
4.Demonstrate Opportunities for Hands-On Support
Angel investors prefer projects where they use their expertise and business contacts to give back to community. To get their support, demonstrate how they can practically participate in finding AD cure beyond providing funds. For instance, show how the investors can offer advice during the cure development process. This would help entrepreneurs focus on finding angel investors with background or interest in AD cure. Most importantly, demonstrate the importance of an AD cure to the community and how involvement of angel investors will be recognized.
5.Display Passion for the Project
Passion is a key factor in determining the final investment decision of an angel investor. They look at an entrepreneur’s passion by evaluating the amount of time spent on pursuing an idea and the steps taken to develop the business. Angel investors also seek to understand an entrepreneur’s motivation to pursue an idea by evaluating their responses to questions, and the products they plan to develop. They want to ensure entrepreneur’s focus on the idea and do not give up until the ultimate goal is achieved. So, be passionate about AD cure to convince angel investors and win their trust.
Finding an AD cure is a great project potentially poised to attract the attention of angel investors. It will give them an opportunity to play their corporate social responsibilities.