Tip 75: Deal structure – “a clear ask amount”. To raise money from angel investors, you don’t need to have a PhD in deal structuring. But you do need to have a clear proposal. We have a few tips relating to that, beginning with tip #75: have a clear ask amount.
You should have worked out how much money you would like to raise long before the pitch. Even if you’re doing a one-on-one pitch to the first individual you’re discussing this with, you should have a proposal – and you should present it clearly.
Give the definite, single figure amount in the pitch. $1 million or $150,000; but not $250-500k. People raising “a range” of capital typically don’t do well. If you’re not sure if you need $250,000 or $500,000, you either (a) haven’t thought exactly how you’re going to spend the money, judge its success, understand the milestones ready for future fundraising or exit or (b) are presenting a plan with too many variations to be compelling in a quick pitch.