Question

An angel investor is interested in taking a stake in your business, be proactive and write a formal memo to your venture team on the information the angel investor would be interested in doing and say why

Answer 1

To: The Venture Team

From: The CEO

Date: 16^th July 2019

Sub: Potential interest from a prospective angel investor

Our venture has attracted the interest of a prospective angel investor who is looking to buy a stake in our business. To ensure that we receive the funding from the angel investor I would like us to present all relevant and important information to the investor in a proactive and agile manner.

First of all like any other investor, this angel investor is looking at a potential for solid return. So it will be pertinent to provide the investor with our business plan and support it with the projected financial statements. The robust business plan supported by a tangible set of financial numbers will help in clearing all doubts in the mind of the investor and provide him with a good enough reason to make the investment. Secondly we should also provide the angel investor the details about the management team and show him the experience, strength and capability of the management team. This will help in assuaging any concerns that the investor might have with regards to the strength of our corporate governance and levels of internal controls. Lastly we should also present to the investor a viable exit strategy. While the angel investor will be making the investment from a long term perspective he will exit at some point in future so as to be able to earn an attractive return on the investment.

In case any of you feel that the angel investor should be provided with any other important information then please feel free to put your points and opinions across in a free manner.