9 Tips for Raising Startup Funds on AngelList

AngelList is a community on web where startups are matched with the investors to make fundraising process more organized.

You can raise funds for your startup from AngelList and help other startups for the same. You can also refer various startups to this community and become the best connector of the website.

Nine ways for raising startup funds on AngelList

1. Enable the investors to write the checks easily

AngelList is especially designed to simplify things for the investors. Now investors can write checks very easily to the entrepreneurs.
AngelList devises ‘social proof’ by using the valuable social mechanics so that the investors can write checks very easily. These mechanics are taken from various social networking sites like LinkedIn, Twitter and Facebook.

-Every investor, entrepreneur and startup has a similar profile as that of a Facebook.
-Followers are an essential element of a startup as that on Twitter. -Introductions can be made in the similar way you make on LinkedIn.
-Comments can be made on your startup profile similar to the Facebook wall.
-Your startup status is similar to the Twitter status. Your followers receive a notification when it is updated.
-In Facebook, you get a notification when somebody tags your friend in any photo. In AngelList, anotification is sent to you when the startup is joined by an investor followed by you.

2. Follow the Basics

Make a private profile. This is your one-pager or executive summary. You must use a similar style and tone as you use in an executive summary or investor deck. Do not write it in a haste. Spend some time on it, do a complete research and make a unique profile. Fill all the sections. A unique AngelList profile exceeds a single page.

Add numbers: Instead of writing 100K, write 100,000. You must include the names of big customers to make your profile look more impressive.

Pull more customers: You must figure out the actual number of customers who use your service. Keep a track on the count of active customers in a month. You should be aware of the viral coefficient.

Display traction: You should include a video, screenshots of the product and charts to display your revenue or traction. You can also include an excellent video pitch, if available.

You do not need to focus on getting a coverage in print and electronic media. Nobody really bothers about that.

3. Search for a Referrer

AngelList has a ‘referrer’ field where one person can be listed. List the person whose reference has made you join AngelList. It is because of this person that you are able to raise funds for your startup.

4. Add only those who are known to you

You can add the existing advisors or investors. The more the number of investors you have, the more it is better for your startup. But you must note that only those people should be added who are relevant or significant to your startup. 2-3 advisors is a good count.

You should be very careful while listing your advisor or investor. Tell your investors to request an introduction. 10 introductions is a good count. People would send the introductions but the initiative has to be taken by you.
You must tell the advisors and investors to write a comment in favor of your startup. If you get three comments, it is a good count.

You must refrain from making fake or ingenuine intros. People can easily notice this and it creates a bad impression.

5. Your Profile Can Be Used As An Executive Summary

If somebody wishes to see your executive summary, a link of your profile on AngelList can be sent. It serves the purpose. “Check out our executive summary at angel.co/xstartup.”

Investors can visit your AngelList profile to view the executive summary instead of going through a boring PDF file. Your AngelList profile is never monotonous as you keep on updating the fields regularly. Joining of an investor adds to the update on your profile.

Investors must visit your profile on AngelList before they start an interaction with you. They can get more details about your startup by studying your profile.

They can become your followers and write a comment. An introduction can also be added by them. All these factors increase the chances of marking your AngelList profile as a trending or hot company.

After the fundraising process is complete, you can ‘turn off’ your AngelList profile. Mostly, people do not save a copy. You can lock parts of your profile. You can also select individuals who can see the locked parts. Even if your link gets leaked, the important information will not be displayed.

6. Respond Quickly

Whenever an intro is asked by an investor, you must respond as soon as possible. The closing rate increases when you respond quickly.

You should create a letter which can be sent whenever required. Keep your supporting documents and reply ready.
You can use Tout in which the email addresses can be managed to send quick replies.

7. Search For A Lead Investor

You need to look for a lead investor. A list of the best angel investors is useful but you must search on the community for the investors who have invested in your startup in the last one year.Also, you should  search for those who have relevant experience.

Many leads have a group of co-investors. The deal can be shared with them. You must tell the leads to share the deals on AngelList. Keep the things in your favor by selecting a lead first.

8. Promote your profile

After searching for a lead, it is time that you display your profile amongst maximum number of investors.
Search AngelList by geography and market.

An intro can be requested with a person who is a follower of your referrer, advisors and investors.
In case you cannot do so with a person, the deal can be shared with him by other investors. But you must ask the trusted investors to do so.

Apart from these methods, you can contact them by using social networking sites such as Twitter, Facebook and Twitter. While contacting, you must send the link of your profile on AngelList. Follow the above mentioned steps to cover the best investors on the AngelList. The progress of your startup will be notified to them regularly.

9. Keep on updating your profile

Keep your profile up-to-date. Keep it active. This profile provides a platform of communicating with your investor. Your status can be updated with short messages that talk about the progress. After you have finished raising funds for your startup, update your status. Whenever you want to raise the funds next, your updated profile will act as a social proof.