Inside the Mind of an Angel Investor

Before you request a meeting with a fund manager or angel group, it is important to understand what’s going through their minds. Learn how to position your company for a better chance of consideration.

Michael Kindrat-Pratt, Ohio TechAngels Fund, senior director, and Parker MacDonell, Managing Director of OTAF, will discuss the traps entrepreneurs often fall into when speaking to angel investors. Learn how to avoid phrases or ideas that could get your startup shown the door.

Thoughts all investors have during bad pitches:

1. “Please don’t waste my time or yours with a lifestyle business that has no potential to scale.” You would be better off with a bank loan.

2. “Hockey season is over in early June.” Do not forecast a growth in revenues over five years that looks like a hockey stick.

3. “Does this entrepreneur understand that I have no interest in using my money to pay her or him a six-figure salary?” Many angels are cashed out entrepreneurs.

4. “Does she or he have any idea that there have been less than two dozen IPOs in the last 24 months?”  Express a willingness to IPO, but lead the discussion with a list of potential companies that might acquire your firm and why they would pay enough.

SPEAKERS:

Michael Kindrat-Pratt, Senior Director, Investment Funds & Ohio TechAngel Funds

Michael manages activity related to the Ohio TechAngels Funds (OTAF), including initial investment, deal screening, pitch preparation, due diligence, terms, and investment. Michael has a BS in Management from Boston College.

Parker MacDonell, Managing Director of OTAF

Parker leads the Ohio TechAngel Funds, which invest in seed-stage Ohio companies. He formerly led the Rev1 Advisor Network, matching engaged client companies with business leaders for one-on-one advice and mentoring. Parker holds a BA in Music from Dartmouth College and a Masters of Public and Private Management from the Yale School of Management.