The Journey Continues Globally
Your 30 Global Mentors from Silicon Valley, Europe, the Middle East, South America, Africa and Asia advise how to financially sustain your business's impact with the best leadership team.Continue Your Journey
In Round 3, you will outline the financial projections of your business, your leadership team, your advisors, and your barriers to success in Africa. Global Mentors who are experienced entrepreneurs and venture capitalists from countries all over the world will guide you on your journey. Click here for more information about rounds.
How to Win Investors with Your Executive Summary
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How to Win Investors
Investors look for two things when investing in your African ideas, prototype and startup businesses.
- #1 for Angel Investors – is You and Your Team.
- #2 for VC’s or Venture Capitalists – is Financial Growth.
Angels are individuals, usually high net worth, who invest in your business after your personal savings, family and friend money is gone. Angels usually are also advisors to help you operate the company – or at least give lots of hands-on advice – in exchange for a piece of ownership. Usual amounts are USD$5K-50K with 10-50% ownership in exchange.
You win Angels by honestly telling them what you and your team have done before. What have you tried so far or before this idea? What did you learn? Always be able to tell your story of initiative and success and failure. That shows Angels that you are not just a dreamer, but can make something happen, so they have greater confidence to invest and manage your entrepreneurship dream with you.
VC’s start with Series A funding after angel money is spent. It is called “A” because after you grow, you may go back to ask for Series B, which usually is larger and for going public with shares, VC’s raise capital from lots of others and are expecting you to grow. They expect about 20% return on their cash investment with you and/or to cash out when you sell the business. Usual amounts of investment are $1M+ in entrepreneurship.
You win VC’s by showing them how your business will grow with assumptions you have tested. Dreams don’t convince them. Big, inflated numbers in the billions about the size of the market don’t impress them. Instead, showing that you can have customers who will buy at a price with a good margin, stay ahead of competition with your products/services, and proof that people will buy in the future. That will give them confidence in you.