How to send your pitch deck to an angel group and get the funding you need for your startup?
Angel groups can be a powerful source of funding for startup ventures. So, how do you get your pitch deck in front of them and run an effective fundraising process?
Keep reading to check out the who, why, and how of raising capital from angel groups.
What Are Angel Groups?
As the name suggests, ‘angel groups’ are simply groups of angel investors who invest together.
These angel groups typically meet together regularly. They listen to entrepreneur’s pitches, evaluate them, and fund them together.
Angel investors are typically individuals with the personal capital to invest in startup ventures. Though there may be other more professional investors involved as well, including family offices.
Angels have been increasingly banding together in these groups.
Groups may range from a handful of members to close to 300 investors. They can invest several million or a couple of hundred million dollars per year in startup ventures.
Crunchbase has 172 tagged ‘Angel Groups’ listed in its database and rankings. For ‘Angel Investment Companies’ they have 928 listings, which have recently funded $1.8B across 196 funding rounds.
According to Entrepreneur, 10 of the most active angel groups are:
- Ohio TechAngel Funds
- Tech Coast Angels
- Investors’ Circle
- Golden Seeds LLC
- North Coast Angel Fund
- Band Of Angels
- Hyde Park Angel Network
- Alliance Of Angels
- Pasadena Angels
- New York Angels Inc
Why Angels Invest Through Angel Groups
Groups are an efficient way to find deal flow. Not only more deals, but potentially better quality deals as well. Just as with any other sector, larger amounts of combined capital can get them into potentially more profitable deals too. This is why you should understand how to send your pitch deck to an angel group.
The collective intelligence and experience of the group can help with making better investment decisions, with more information and expertise. Others may have more in-depth experience in a specific field, and more time leverage can enable more due diligence before investing.
As Peter Theil pointed out in his book Zero To One, more capital injected into few startups can be far more impactful. It is a force capable of driving the success of a venture, increasing the odds of a positive outcome and superior returns.
Being able to bring more value to the table with more capital and experience and connections, angel groups can likely command and warrant better investment returns than individual investors on their own.
Together angels can spread their risks, and gain more confidence in doing so. Instead of having to put all of their investable capital into one deal, they can spread that across multiple ventures.
See How I Can Help You With Your Fundraising Efforts
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