How to Kill the Angel Investor
"Deal-Killers"
Have you experienced the frustration of dealing with a self-professed
"interested" angel investor who you just cannot close, no matter how
hard you try or how many months go by? If you have, read on.
After writing last month about angel investment "Deal-Killers," I
received a slew of emails and calls from frustrated and angry
entrepreneurs unable to close deals with angel investors. Many
of them had invested more than a few months talking to
investors who had repeatedly expressed a commitment to
invest. Yet every attempt at closing the deal had ended in
frustration. Some of the angel investors finally expressed a reluctance
to invest at this time while others have just dragged their heels and
avoided the subject. Either way, the result is the same. The frustrated
entrepreneur can't get the money he or she desperately needs for their
company.
As pointed out in the previous post, the resistance often stems from
the angel investor's uncertainty over how they will get their money
back plus any profit that may have accrued. To be honest, their fears
are real. Minority shareholders in a small private company (i.e., a
chronically cash-strapped one) are at the mercy of the majority who can
easily find a hundred better uses for limited capital than buying out
investors--especially the passive variety. Both sides always have a
convincing rationale. The minority investor feels that it's time he was
finally rewarded for taking a gamble on the company at an early stage.
Meanwhile the majority are convinced that if they just hold onto that
money for another six or twelve months, it will allow the company to
hit a new plateau which will insure its long-term success.
Who is right? Probably both sides to a degree.
With this problem in mind, I have developed a tool for raising money
which addresses the concern that all angel investors have about their
exit strategy. Indeed, it tackles it head on.
Closing Angel
Investors
This product consists of a 20 page book in pdf and an accompanying
spreadsheet in Excel. Contained within the package is all the
knowledge you need to be able to utilize an innovative financing
instrument to close the deal with angel investors. The instrument,
called a Revenue Royalty Certificate (RRC), is a loan structure which
clearly demonstrates to the investor how and when they will recover
both their principal and profit while also receiving an equity stake in
the company.
However, the RRC is not just about benefits for the investor. This
instruments also offers substantial
benefits to the entrepreneur. I am
referring to freedom
and autonomy here. With an RRC, the investor is
unlikely to interfere with your management style as long as the
payments are being made on time. The RRC is a win-win.
There are a few more bonus lessons contained within which reveal how
sophisticated entrepreneurs select their target investors.
Regular price $49.95 (USD). Today it's
yours for only $34.95.
Don't lose anymore time spinning your wheels.
Stop beating your head against the wall and discover how to close a
deal.
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