This is an anonymous post from an Elpha member.

How can I get the first 25k check from an angel investor ( I don't have 'family and friends' )?

Sierra166·Jun 10, 2022

Sent out my MVP for testing via TestFlight/the apple store and I am now in a position where I **really** do need some money to continue to work on what I am working on. I am not quite ready to raise from VCs so early... my question is, how does one go about raising money from angel investors who write tiny checks?

What exactly do I need to show them? A deck and the link to the MVP?

Also I don't want to lose more than 1% or 2% . I often read how people raise '25k from family and friends' but I need to know exactly how that is done if you don't have 'family and friends' with 25k. I know only ONE VC... should I ask him to put me in touch with angels?

Do they ask what valuation I am going for? Or do I ask for a specific amount? What exactly do I need to write in an email, for example. What is the conversation like?

I have watched tons of videos about fundraising but I need actionable information to execute on this scenario. What are the tasks involved? I don't want to reach out to hundreds of people, just a few at first who might be more aligned with what I am working on.

I am in NYC if that matters. Built the product myself.

SamanthaChai·Jun 10, 2022

Hi Sierra,Congratulations on building an MVP! These are the tasks involved: - Cold outreach and warm intros to Angels. Ask everyone in your network. The likelihood that you secure a deal with select VCs that you pick is low, founders often have to reach out to 100s of VCs to get their first cheque. This involves emailing VCs, and they may ask you to submit a deck. Here's a link on how to write an email: https://www.alexanderjarvis.com/writing-a-cold-email-template-for-venture-capital-investors/- I know you don't want to lose more than 1 or 2%, but you'll probably have to give away more than that. A $25k cheque puts you at a $2.5m valuation at 1%, which is not unreasonable, but it depends on how built out your MVP is and your background. - Ideally, you want to hit over a $1m valuation which is pretty standard. Some founders choose to attempt to hit a certain valuation and amount fundraised, and choose to disclose the amount to VCs. Some founders decide not to choose the amount and let the "market" decide. It just depends on what you think will maximize your returns. There's definitely more I'm missing, but this is what comes to mind :) Good luck!

Sierra166·Jun 10, 2022

THANK YOU!!!This is exactly what I was looking for!!!!You made so much sense and thank you for bringing up the valuation situation. After reading this I am thinking I am better off building it further, getting users and getting a temp/freelance job for now until I have some evidence of growth.Thank you also for the excellent template, I am thinking I am not going to email anyone lol I will focus on building and getting users for now. But I will refer back to the link you provided in the future. May you be blessed and protected always!!!

claramota·Jun 17, 2022

At the idea stage, you need to look for Business Angels networks and select the ones that invest in your space or vertical and at this stage (usually they say in their profile), you probably would benefit from going to an accelerator (Launch, YC Startup school, Founder Institute).