FAQs
What is an Angel Investor / Business Angel?
Business Angels are investors, who invest their own funds privately or via their own investment vehicle in startups. Typical angel investment range between €10.000 to €100.000 in one startup in the first round, with further investments in future rounds.
Is Angels4Health a venture company or fund?
Angels4Health are single individually investing Investors, not pooled in a fund. Each investor takes his/ her own investment decision on the here presented ventures. Usually business angels syndicate in venture investments, where huge sums are needed but still involve directly with the startup. Angels4Health are not managing “other people’s money”, and is neither a regulated money manager nor a broker/dealer.
Is there a special stage startups have to be in for an investment?
Business Angels normally invest in startups of earlier stages from idea-stage to series A. Therefore it is never too early to start the dialog with us. The more progress you have already made – on product development, licensing, studies and phases, or even revenue, the more attractive the deal terms you will typically be able to obtain from angel investors.
How can startups speed up the process between application to funding?
Very often the process is delayed with the organisation and review of relevant documents during the due diligence process. Well-organized due diligence documents reflect well on your company and speed the review for investment.We strongly encourage you to review existing lists on relevant due diligence documents in the internet.
What is the regular investment sum per Angel Investor?
The invested amount by each investor depends on the individual investment structure of each member. Normally, angel investors invest a sum in between €10.000 to €100.000 per venture in a first ticket.
Are there typical information that are necessary in the pitch deck?
For getting into contact with Angels4Health we provide divers upload functionalities for your pitch information. Usually investment information exist of an one-pager and/ or pitch-deck. For examples of one-pagers we refer to these excellent resources:
- One-Pager of BAND (Business Angels Deutschland)
- The Ultimate Pitch Deck Guide by AddedVal.io
- Guy Kawasaki’s The Art of The Start
A successful pitch deck usually contains between 10 – 15 slides with the following content:
INTRODUCTION SLIDE
Name/ Brand of your company and/ or product
Explain what your company does in a single sentence.
PROBLEM
Describe your customer’s burning pain point.
SOLUTION
Describe your product and explain why it makes the customer’s pain go away. Use examples.
MARKET SIZE
Use both tops-down and bottoms-up. Segment and identify your sweet spot.
BUSINESS MODEL
Explain how you are going to make money. Who are your costumers? How and why are they willing to pay at what price (if applicable). What are cour customer acquisition costs (if applicable)
GO TO MARKET
Describe your sales distribution model.
TRACTION
List your achievements and current status
Describe future next steps
List current customers, partners and users, as well as your pipeline (if applicable).
COMPETITION
List your competitors and describe your unique selling point and advantages. What makes the customers absolutely choose your product?
TEAM
List your founders and describe their functionalities and their experiences/background. List your key management and advisors (if applicable)
INVESTMENT
Place the expected sum you would like to raise
Describe the areas, where the investment is supposed to bring value
What’s in a Due Diligence Checklist?
Once the angel investors have expressed initial interest to invest you will be asked for follow-up meetings. Be prepared to discuss and explain all aspects of your starup: team, financials, corporate legal structure, contracts, etc. In early stage investments this can be a rather short process, in later stages it becomes a formal due diligence process involving financial and tax advisors, auditors, technical experts, IP lawyers, corporate and other legal counsel.
Here are good examples of full due diligence checklists: