If you are in search of an MVP development agency and investors that give you the funds, this text is for you. We picked up some tips on getting investments and found 7 great NYC angel investors that can help your startup get wings.
Where angels come from
If you needed to name an individual startup investor, how would you call them? Saviors? Helpers? Holy men? We can imagine various names for those who help startups, but at the beginning of the previous century it was done for us.
It happened in the 1920s and, lo and behold, in New York City. Despite the theatrical community being poor, the passionate members kept playing. On a good day for actors, the wealthy visited Broadway theatre and — if they liked a performance —provided money for a theatrical performance. Playgoers called such individuals angels because Broadway shows might have died unless they hadn’t supported it.
In 1978, the Center for Venture Research completed a study about USA businessmen raising seed capital. They began using the term ‘angel’ when referring to investors. From this time, an individual who provides capital for a business startup turned into an angel investor.
Nowadays, angel investors are high-net-worth people who give financial backing for small startups, typically in exchange for owning an equity of the company. Angel investors are often startup owner’s relatives or friends. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.
You need wings to get off
And a startup needs funds. Let’s find out what advantages you gain when an angel investor comes to your project and why it’s better than other investments ways.
1. Nothing ventured, nothing gained
Unlike the traditional investors, angel investors aren’t beholden to banks or other institutions. This allows them to invest their money much more freely. As such, angel investors may be more likely to take investment risks.
2. Wise men say
Most NYC angel investors didn’t just magically gain their money — they had to learn a ton while they were growing up their wealth. When an angel investor comes to your company, you get access to all the knowledge your investor has. Surely, you can use it to develop the startup. Although 9 in 10 startups fail, angel investor’s experience can make your company the one success story.
3. Money is not a loan
As you take out your small business loan, your bank will expect you to repay it, irrespective of whether the venture actually succeeds. An angel investor operates according to a different framework. They’ll offer you the capital needed to get the ball rolling and receive an ownership stake in your company as an exchange. If the startup takes off, you’ll both reap the financial rewards. If your company falls flat, an angel investor won’t expect you to pay the offered funds back.
Show me what you’ve got
It is not enough to find a NYC angel investor. To get investment and start the project, you need to present your idea and prove its efficiency. There are various approaches to completing this task, but the best one is to build an MVP app. Minimum Viable Product is a version of your app that includes only core features. If investors like your MVP, they will probably want to give you the funds.
We’ve collected 3 tips to use on the MVP presentation. It helps you get ready for the pitch.
1. Don’t send just a business plan
150 boring sheets of paper or just an email containing your plans is the worst thing you can send to investors. It doesn’t matter how interesting and useful your app is — without a good presentation you won’t succeed. Make a short summary of the business plan with bullets, lists and pictures. 10-15 good-structured slides are enough to convey the idea of your MVP. To make the long story short, don’t make the angel bored.
2. Show teamwork
There is safety in numbers. Investors really appreciate teamwork — show them that you gathered professionals enthusiastic about the project. It’s really good to present them as professionals and great team workers, so don’t forget to highlight your teammates’ skills, experiences, motivations, and involvement in the business. Also, during a face-to-face pitch, investors prefer to speak with the whole team rather than just a CEO.
3. Make a good pitch
An efficient pitch should be personalized. Consider the information you gained during investor research when writing your pitch deck. Address investors by their names, and include a small note that explains why you’re writing to them and gives a short story about your startup.
Angel’s map
Angel investors don’t grow on the trees. Wanna find them? You need a map! Lucky you are — we’ve got one. As we are talking about the US and especially New York City angel investors, let us introduce Angel Investors on the US map.
Top-7 NYC angel investors
1. New York Angels
The New York Angels are in the top 10 of most active angel groups. New York Angels is a member-led organization committed to finding, funding, and mentoring great young companies from pitches through successful results. New York Angels consist of over 130 active members with a wealth of experience across industry sectors. They generally invest between $100,000 and $1 million, and their portfolio includes a pretty diverse array of tech companies. They meet monthly to discuss new investment opportunities.
2. 37 Angels
37 Angels is a community of more than 90 female investors that focus on early stage investment education. These NYC angel investors generally invest between $50,000 and $150,000 in 10 to 12 startups per year. They meet every two months for a pitch forum, where eight companies are invited to pitch. The main feature of 37 Angels is that they invest in female startups. Their goal is to help women around the world start their own businesses.
3. Harvard Business School Angels of Greater New York
HBS Alumni Angels of Greater New York is the largest angel investing NYC group with 350+ angel investors. Their members have invested $15 million across 100 exciting early-stage companies. They meet monthly to hear pitches in person from the best entrepreneurs. On average, they invest in 1-2 companies per month a few weeks after they pitch. The angel investor members are Harvard Business School and other Harvard University alumni who invest on an individual basis.
4. Golden Seeds
This group of over 300 angels invests in women-led businesses. They tend to look for companies valued at about $5 million seeking the first round of funding between $250,000 and $2 million. In addition to their angel group, Golden Seeds also runs several venture capital funds. Headquartered in New York City, Golden Seeds has chapters in Arizona, Atlanta, Boston, Dallas, Houston, New Jersey, New York, and Silicon Valley — and active members throughout the country.
5. Long Island Angel Network
This NYC angel investors network is set up to encourage seed and early stage companies to set up shops on Long Island. It should be noted that if they fund your company, they’ll expect you to have a mission-critical portion of your business located on Long Island. Investments tend to be between $100,000 and $750,000. LIAN is a New York not-for-profit corporation consisting of individual angel investors interested in financing privately held companies or ventures.
6. BoxGroup
BoxGroup prefers ‘early means’ rather than traction and raw product. They are one of those investors who appreciate teamwork in the team. They believe in ‘founder market fit’ — the concept that certain teams are able to unlock specific markets. This is the first step to get to ‘product-market fit.’ BoxGroup was among the top three most active United States-based micro venture capital firms in 2014. The company was listed in Poet & Quants ‘Top 20 Investors Behind MBA Startups’ and has more than 230 investments in startup companies including Vine, Groupme, Warby Parker, and Behance.
7. Founder Collective
Founder Collective is a partner from the idea to IPO. The partners at Founder Collective have all built and sold technology companies. Our goal is to make Founder Collective the firm we wish had existed when we were starting out. Venture capital is a dangerous commodity — they provide an instruction manual.
