“Angel Investors” or "Business Angels" are wealthy individuals with money available to invest in early-stage tech startups hoping that someday these small companies might become the next Google or Amazon. The presentation shows what Angel Investors are looking for in a startup, on what terms (e.g. valuation) the typically invest and how to recognize "evil" angels.

1. Send me an Angel! – How to find an
Angel Investor for my Startup?
CEBIT Scale 11| June 14th, 2018 | Hannover
Florian Huber
www.florianhuber.de

2. www.florianhuber.de | as of June 2018
Founder/Entrepreneuer

3. www.florianhuber.de | as of June 2018
Angel Investments

4. Startup Funding Stages
www.florianhuber.de | as of June 2018
What is the sweet spot for Business Angels?

5. Typical Terms of an Angel Round
www.florianhuber.de | as of June 2018
Valuation
(pre-money)
Size of Round Ticket Sizes of
Angels
Traction
(revenue)
Pre-Seed 0,75M to 1,5M 100k to 250k 25k to 50k 0 (but: working
protoype!)
Seed 1,5M to 4M 250k to 1M 50k to 200k 10k to 25k per
month
Series A > 4M > 1M VC (Angels only as
side investors)
min. 50k/month +
min. 20% growth
rate m-o-m
(digital startups, first-time founders, 2018, Germany)

6. Are you investor-ready? (pre-seed/seed)
www.florianhuber.de | as of June 2018
• Team – Team - Team
• scalable business model (through technology)
• address a big market (chance of 25M yearly revenue within 5 years)
• pre-revenue ok, but you need working prototype (Angels aren‘t investing at
the idea stage)
• timing: not too late, not too early
• valuation in line with market standards
• standard investment terms, e.g. liquidation pref, vesting, drag/tag along
• chance of a 50M to 100M Exit within 7 to 10 years

7. Team – Team –Team

8. Red Flags for Investors (What to avoid …)
www.florianhuber.de | as of June 2018
• single founder (no founder’s team)
• no technical co-founder
• founders not “all-in”, founders not 24/7 committed
• unfair equity split between founders (e.g. business guy holds 95%, tech guy
holds 5%)
• broken cap table: giving away free equity to consultants, agencies, advisors
or too many investors with small tickets (< € 20k) on the cap table
• over-selling and being over-confident: most investors have excellent bullshit
detectors (because we hear it everyday!)

9. How to contact an Angel Investor?
www.florianhuber.de | as of June 2018
• Bad Idea: cold emailing investors without any personalization (“startup spam”)
• Better: cold emailing investors with a highly personalized message (“ … I‘ve
watched your presentation at Scale 11 this morning, ....“)
• Good: get an intro to the investor from a shared contact
• Best: get an intro to the investor from a successful(!) founder of a startup from the
investor’s portfolio
Best practice: Get an lead investor first, negotiate the terms with the lead investor (signed
term sheet) and than look for other investors with the help of your lead investor!

11. Thank you!
@florianhuber
www.florianhuber.de