Properly approaching an Angel Broker or Investor is a fine art that entrepreneurs must learn (and master!) in order to successfully get the attention they need.  You would be surprised how often a good deal is passed over simply because it’s horribly presented by the entrepreneur.

Angel Investors are typically inundated with requests from entrepreneurs who all seem to think they have the one idea that no one else has thought of.  For this reason they are constantly fighting through the noise trying to find deals that are truly worthy of their time.

The key to cutting through the noise and getting their attention is learning how to speak their language.  Here are the basic principles you should consider when approaching an Angel Investor:

Get to the point

Brevity is an Angel’s best friend, so you should be able to summarize your investment opportunity in just a few sentences to get their attention.  There are no points awarded for long, drawn out explanations of your business model! 

Here’s an example of a simple yet effective introduction:

"Our company, The Invstor.com Network, connects startup companies with the resources they need to grow, like investors, partners and management talent.  We are seeking $500,000 in our first round of capital to expand our marketing budget to increase our rate of growth."

Certainly we could say more, but in just a couple sentences we’ve laid out who we are, what we do, how much we are seeking and what we intend on using the funds for.  If an investor only does restaurant financing, he’s quickly going to know this isn’t for him.  He doesn’t need a 3 page executive summary to make a call.

Don’t try to “close” on the first contact

The point of your first contact isn’t to “close the sale” with a prospective investor.  Entrepreneurs try to get overzealous with their initial e-mails (we see these all the time at Invstor.com in the Request system) with headlines like “You can make 100x your investment in just one year!” or “Are you ready for an incredible return?”

If you go into the infomercial business, by all means use these calls to action.  But if you’re serious about getting professional Angel Investors, avoid these lame introductions and attempts to “close” on the first try.  Investors are intelligent people and they will respond to opportunities that pique their interest, not to cheap hyperbole.

Your goal in the first contact is simply to determine if there is a fit between what you have to offer and what they typically invest in.  If there is a fit, you want the investor to respond to you that they are interested and want more information. 

Don’t be coy, either

Some entrepreneurs go the other way with their introduction.  They create these really mysterious introductions like “Are you interested in investing in the next Google?  Contact me for more information.”  That just sounds lame!  You’re trying to lure the interest of a professional investor, not sell fake Rolexes out of your trenchcoat.  Be straightforward about exactly what you are looking for, don’t be coy with investors.

Don’t hide your idea

If you have a good business idea, share it.  If someone can steal your idea and make a fortune with it just by overhearing the idea, it’s not that great of an idea.  Telling investors that you can’t even share you idea unless you have a Non-Disclosure Agreement is a huge red flag to investors. 

First off, it shows that you’re not that well versed in how investors or early stage investments work.  Investors look at hundreds of deals, meaning if they were to sign a Non-Disclosure Agreement just to look at your idea it would preclude them from possibly looking at dozens of other opportunities.  The only person a Non-Disclosure Agreement will protect is you – from finding an investor!

If there is some sort of secret sauce that you can’t disclose then just don’t disclose it.  Explain the opportunity as best you can without divulging the underlying mechanics until an investor expresses serious interest in investing.

Don’t pester the Investor

Imagine that you were an Investor and you came across a business idea that you really liked and were excited to invest in.  Would you simply “forget” to call the entrepreneur back and express interest?  Probably not.  You would jump right on the phone and call the entrepreneur and get the deal rolling.

Keep this in mind when you’re wondering whether or not an investor is interested in doing a deal with you.  If you’ve presented a plan and it doesn’t seem like you’re getting a return call, it’s probably a pretty good sign that the investor isn’t that interested.  They’re probably busy with investments that they do have time for.

At most it’s worth doing a follow-up call or perhaps an e-mail or two to stay top of mind.  But if you’re getting the cold shoulder, it’s probably safe to say that the deal isn’t going to happen.  Let it go and focus on the next investor.

Summary
	Approaching Angel Investors isn’t hard to do – it’s about being brief, focused and honest about your investment opportunity.  There’s no need to play games or string investors along in order to get a response.  The best approach is an honest one.  If you can show investors that you are mindful of their time and resources, you are more likely to get your foot in the door.