Lately several entrepreneurs have suggested to me that angel investors are just wasting their time. After asking what spawned this thought pattern; the general reply was one of these phrases "They never followed up with me or replied to my e-mails!" or "They wanted a business plani after I had given them the executive summary!" or "They kept asking for more and more information without promising anything!" Each of these requires a different response, and while I am not an angel investor I have figured out how they think.

Lets start with the first phrase "They never followed up with me or replied to my e-mails!" While at times it may seem that angel investors are avoiding you, the majority of the time they are either running weeks behind or have accidentally over-looked your communication. That said, sometimes they are purposely ignoring you to gauge your reaction. Investors DO want the entrepreneurs they invest in, and they do invest in the entrepreneur as much as the business, to be driven and determined to succeed. So continuing to contact them, say once every few days, will increase your chances of getting in contact, and may even reward your persistence. Another idea is to find a mutual friend and have them "mention" your name; this will help speed communication process.

The next suggestion usually followed after an entrepreneur had connected with the investor, "They wanted a business plan after I given them the executive summary!" So when an investor has already been introduced to the business through the executive summary, why do they need a business plan? Well for several reasons: First the sole purpose of the executive summary is to attract an angel investor to your business so if they ask for the business plan then the executive summary was well written. Next the business plan will help them learn more about how the business will succeed and the role the entrepreneur envisions they will play. Finally the business plan confirms that the entrepreneur has thoroughly thought out the business. So if an investor asks for your business plan after the executive summary, get pumped, you just got their attention!

The final suggestion, "They kept asking for more and more information without promising anything!" usually came after multiple communications with the angel investor. This seemingly endless exchange can occur for a variety of reasons but generally it shows interest from the angel investor. It is important to remember that even though you are pitching the investor for the purpose of getting investment that will not always be perceived. To ensure that the investor knows what you are after make sure you tell him or her what you want from them. Then if they ask for follow-up material you can follow-up by saying “If I get you this material what can I expect to receive in return?” While you may not receive investment as an answer, you will have a clear understanding of where you stand in getting investment from that angel.

These suggestions are just a few of the many complaints that I hear about angel investors. The biggest lesson that I have learned from raising capital was to be as honest as you can be with investors, and let them know what you want and when you want it by. A good tactic to use with angel investors is to ask them “if I meet your demands then what can I expect?” This again, will engage the investor, and set a clear understanding that when you have completed their follow-up demands what you can expect. Best of luck raising investment and keep your head high!