Online dating lessons to help you grow your angel network
Since about 2012, dating apps have become the norm for lonely singles looking for a partner. Where, before, you would meet a potential mate at a singles event, it became as easy as pulling out your smartphone and swiping right.
What does the dating scene have in common with the investment market?
The growth of smartphones and the success of social media platforms meant that, for the last decade or so, everyone has looked at apps to solve their needs, whether they be personal or professional.
High net worth individuals are no different. A study by PWC showed that 98% of HNWIs use the internet daily. They don’t just use the internet, they spend 3 hours a day on it.
41% consider themselves to be early adopters of technology, and they’re using that savviness to invest online at a much larger rate than, say, 10 years ago.
In fact, one survey from Accenture Consulting found that 83% are already using digital for financial services.
Platforms for investing in early-stage companies have adapted. Angel networks can now use online tools to help investors build their portfolios, all from the comfort of their own homes.
Networks can promote more deals at once, syndicate deals to other networks and observe investor interest with analytics.
Sophisticated platforms allow for advanced filtering options as well as smart matching to allow investors to easily zero in on those opportunities which are most suited to their preferences.
So what can networks learn from dating apps when it comes down to courting investors?
- It all starts with your profile
Where a savvy dater knows to use recent, flattering photos, networks can work to make opportunities appealing to investors. Deal profiles should include visuals, videos and fresh, up to date data for investors to review.
Regular updates on new customer wins, new hires, new partnerships, and sales results will help shy investors make the first step and get in touch with a company.
Keep giving investors reasons to come back and take another look. Maybe they weren’t sure the first time, so keep showing them your opportunities deserve a second look.
2. Ask questions
Pitch events are not enough for companies to ‘find a match’ in terms of investment. Unless 100% sure on which companies they want to invest in, investors won’t want to ask questions and have conversations they’re not yet ready to have.
Find a platform that allows you to add all the information investors would need to a deal profile – traction, team, supporting financials, valuations. Most importantly, find one that allows communication between investors and companies, in the form of Q&As.
3. Pay attention to signals
A cutting edge investment platform not only allows filtering deals and advanced investor matching options, it shows angel network admins analytics to help guide their investment relation efforts.
Investors can start looking into a deal without having to proclaim their interest. They may ask questions, interrogate the companies’ business plans or ‘follow’ deals and wait for more angels to step in.
Online platforms will allow you to see which deals your investors have visited and which they’re following.
Ready to get started?
We built our network platform, Envestry, with these features in mind. We know that peeking investors’ interest in your companies is a difficult job, so we’ve built a tool that does the job for you.
Envestry is a friendly, easy-to-use branded marketplace that allows you to post deals and share them with investors. They will be able to ‘follow’ companies or pledge investment and will be alerted when there are:
- New developments in the team
- New investor pledges
- Updates on partnerships and customers
- Q&A – Investors may ask companies questions and receive responses on the platform
We’ve also built a syndication feature that allows networks to share their deals with other network partners, if struggling to fundraise for their companies.