U.S. Angel Investor & VC Networking Strategies for Small Business Owners and Startups
5-Step Angel & VC Networking Process
Harvard Business Review (HBR) estimates that the business model (74%), market (68%), and industry (31%) are primary factors determining angel and venture capital (VC) investment. While these are key areas that Mikel Consulting’s expert team can help you develop through business plans, relationships also play a critical role in securing funding for your venture.
Connecting and networking with angel and VC investors plays a pivotal role in the growth and success of small businesses and startups. Beyond funding, relationships offer invaluable mentorship and strategic guidance, helping your startup or small business navigate challenges and accelerate a path to profitability. In this blog post, Mikel Consulting has identified the following steps to support your angel investor and VC networking.
Looking to diversify or expand your U.S. angel and VC network and make a positive impression? Contact Mikel Consulting for expert business planning resources, strategies, and tried-and-tested guidance, which are the primary factors cited by HBR and other industry leaders in securing angel and VC funding.
1. Identify the Right Networks & Platforms
Direct relationships are always important, and there is a lot of value in attending pitch nights and networking events hosted by local angel investor groups, such as Tech Coast Angels in California or New York Angels. Beyond offering one-on-one networking opportunities, these events also enable connections with other founders and a chance to hear from successful startups and small businesses in similar areas and industries. These events are available nationwide, and there will likely be many in your area.
Beyond in-person networking, connecting with U.S. angel investors and VCs inolves identifying the platforms and networks where they are most active. In our experience, popular U.S. and global angel and VC channels include:
Angel Investment Network USA: This global angel platform provides access to a vast network of angel investors interested in early-stage ventures. Using the website, startups can create profiles, share business ideas, and connect directly with potential investors in U.S. and global markets.
AngelList: Known for its dual role as a job board and fundraising platform, AngelList allows startups to showcase their ventures, connect with investors, and even hire talent through the company’s website, with billions in assets and thousands of funds and startups on the platform.
Gust: A global platform connecting startups with angel investors and VCs, Gust helps entrepreneurs to manage their funding applications, pitch decks, and investor communications all in a single platform, making it an excellent addition to the Angel Investment Network and other key resources.
TechCrunch’s Crunchbase: This online resource, popular with investors and startup service providers (including Mikel Consulting) provides comprehensive data on VCs, angel investors, and funding rounds. We believe that it’s an invaluable tool for identifying investors aligned with your industry and growth stage. Pitchbook is another excellent option, though it tends to have less available information.
Attending events and engaging on these platforms through outreach and research is an effective initial way to put your business on the radar of angels and VC investors.
2. Prepare a Targeted Outreach Strategy
At Mikel, we believe that connecting with investors isn’t just about finding them, it’s about engaging them effectively. Below are our recommended tips for outreach:
Tailor Your Message: Research each investor’s portfolio (usually available on the company website and through platforms like Crunchbase and Pitchbook) and tailor your pitch to align with their interests. Our expert-made pitch decks and presentations can highlight how your business complements VCs’ existing investments.
Leverage Warm Introductions: While a referral from a trusted source can significantly increase your chances of getting noticed, we believe there is value in networking more broadly within your industry to build new connections with other individuals who can introduce you to investors (increasing credibility).
Engage on Social Media: Many investors are active on popular platforms, with LinkedIn and X among the most-used platforms. Engaging with their social posts and contributing valuable insights can help quickly establish a connection before you make your pitch, building on the previous two points.
3. Impress with a Strong Business Plan
Once you’ve identified the right platforms and established the right connections, your business plan is the most important tool you can use when approaching investors. Our custom-tailored business plans are designed to demonstrate a clear understanding of your market, business model, and financial projections, in full alignment with what VCs look for when evaluating your business in a wider market and industry context. Here’s how Mikel Consulting can help:
Comprehensive Market Analysis: We provide a detailed overview of your industry, target audience, and competitive landscape, showcasing your business’s potential for growth in a format that is data-rich and highly detailed, yet still easy to access and digest for angel and VC investors.
Financial Projections & ROI Focus: In our experience, investors are drawn to ventures with clear, achievable financial goals. Our plans include precise financial sales forecasts, funding allocation sources and uses, and demonstrated viability to help show how your startup will achieve break-even, profitability, and scale.
Compelling Value Proposition: Across the business plan and financial model, we are dedicated to highlighting what sets your business apart by articulating the unique value your startup venture brings to the market, making it easier for investors to see the unique and verifiable investment opportunity.
4. Combine with a Custom Pitch Deck
A concise and visually engaging pitch deck complements your detailed business plan, enabling you to make an immediate impact during meetings and presentations. Mikel Consulting offers an investor business plan and pitch deck package, custom-tailored to your needs, to ensure you’re prepared for both written and verbal presentations.
Quick Engagement: A pitch deck allows you to captivate investors with a high-level overview of your business, whether delivered digitally or in-person.
In-Depth Insight: A detailed business plan supports your pitch by providing comprehensive data and analysis for investors who want to dive deeper.
5. Follow Up & Build Relationships
Securing funding is often a long-term process, with even the most experienced founders requiring multiple engagements to build relationships and ultimately secure the funds they need. After your initial interactions, we recommend that you follow up with investors to maintain the relationship, even with those who might pass on the venture itself. The process of finding dedicated and entrepreneurial founders with a passion for their business is harder than you might think, and experienced VCs are often willing to maintain a connection with founders into the future. Sharing updates on your business’s progress, new achievements, or milestones reached keeps your business in their top of mind and demonstrates your commitment and resilience, no matter the initial outcome.
At Mikel Consulting, we understand what it takes to capture the attention of angel investors and VCs. Our investor-ready business plans not only present a compelling case but also inspire confidence in your business’s potential. With a proven record of success and many hundreds of millions in funding secured for clients worldwide, we are your trusted partner in transforming your vision into reality. Whether you’re seeking funding for a seed round or scaling operations, our team’s expertise ensures your business is positioned for success. Contact us today to learn how we can help you secure the capital you need to grow.
