1. Financial Congress 2011 – 9 June 2011
Make an Angel Love You
How to pick up
business angel investors
Miguel Ángel López Trujillo
GoogleHumano.com
EBAN - European Business Angel Network
miguel.trujillo@eban.org
servicios@lopeztrujillo.com
Twitter: @lopeztruji

2. My goal
Increase your chances of persuading
an angel investor to invest in your
company

3. Why me?
I asked BAs for money
(Loenviogratis.com)
I invested as a BA in 1
company (Partizipa.com)
I organized pitching events
for angels (Crecermas.es)
I interact with angels
everyday (Eban.org)
I have angel friends
(e.g. Julian Costley*)
*Most of the contents of this presentation are a
courtesy of him.

4. You meet an angel:
what should be your first goal?
Get invested?
NO!
Get another meeting!!

5. What Makes Angels HOT
1. Upfront proposition
“I would like you Mr/Ms Investor to invest X for
Y% of my business. The business will achieve Z
financial performance over Q years. The
proposition will become valuable to various
potential buyers in P years, and I intend to sell
to one of these acquirers in 5 to 7 years. Given
comparable deals in the market, I anticipate
that the business will sell for a price which
equals 5X profit, and our forecasts show that
we will achieve that in that time period.”

6. What Makes Angels HOT
2. Single main idea
“We can become the definitive support
organisation for international staff
locating in Spain”
3. Evidence that the plan will work
E.g. working already in another country?

7. What Makes Angels HOT
4. Credible idea and revenue model
Market need? Scale?
5. Credible and committed team
Professional teams, usually with big
company experience followed by a
breakaway to “do my own thing”
Personal time & money invested

8. What Makes Angels HOT
6. A business plan ready
It just need gas (money) to hit the road
7. Enough funding for the project
It is embarrassing (and reveals lack of
planning) to go back to the angel for
more

9. What Makes Angels HOT
8. Enough shares in the company to give
the Angel a 'voice„
5% minimum
9. An attractive valuation & investment
return
Downside protection before upside gain

10. What Makes Angels HOT
Bonus!
• A sector that the Angel knows
• Close from where the Angel lives
• And illogical reasons to make the
Angel loves you!
E.g. people whose opinions the Angel
respects have said „yes‟.

11. What Makes Angels COLD
1. Garbage!
Good Angels are experienced
business people. Don‟t say what won‟t
match their real-world experience.
“We can be fully operational 60 days after
funding and cash generative in 9 months!!”

12. What Makes Angels COLD
2. A naïve or negligent entrepreneur
Researched the angel before
approaching?
Checked if the info sent in advance
reached them?
3. Unclear (or none) investment
propositions
Orientate the angel with a simple Net
Present Value or earning multiple
calculation

13. What Makes Angels COLD
4. Complains
Never complain: angels take big risks!
5. Impossible propositions
“We’re looking for 4 angel investors with
complementary (non-overlapping)
industry skills and connections to put
up EURO 50,000 each, and give up 2
days per month to support us in the
next few critical months”

14. What Makes Angels COLD
6. No backup data
“The full business plan is nearly ready. We’ll send it
when it is...”
“We have top level financials but no detailed monthly
P&L and cash flow data for ...”.
7. No 'sales close' or requests for
'reference„
“Would you spend 2 hours with us refining our strategy
– you seem to know a lot about this sector?”
“Could you send our plan to other investor friends?”

15. What Makes Angels COLD
8. People that give up easy
If „no‟ ask „why?‟. If proposition changes
positively, then insist.
9. Dreadful presentations
Horrible time administration, no story, no
interaction with the audience, slides
and images too complex and
confusing, no conclusion, no calls for
action, low voice, no passion...

16. How to pick up
Julian Costley
Invest
25,000€ to 150,000€
Give him supplementary options
1 option granted per 1 share purchased = 33%
discount on all shares when company value
doubles (after exercise price paid)
Offer annual fees as chairman or non-exec
About EURO 20,000 to 30,000 p.a.
Active role in shareholder value growth
Influence in the timing of exit

17. ...and remember!
• Be fun, honest, nice, interesting,
intelligent, knowledgeable,
challenging, innovative and
generally good to be around
...because...
• Angels want to have fun too and
want to be proud of the
management and the companies
they invest in!

18. Thank you!
Questions?
Contact:
miguel.trujillo@eban.org
www.googlehumano.com