Thanks Jason. Great insight. Unfortunately even with a validated MVP, it's still hard to get Angels to actually take a look, let alone take a step forward
At this point having only an MVP with out any traction isn’t good enough anymore. People who give you money at this point would be your friends and family. Investors want to see companies with products in the market with traction. At the very least you want a list of potential customers in a private beta for your product. Just assume that every investor has really good deal flow. So what that means for you is that you are competing against companies with great traction. So if you don’t have any traction why would they pick you over the other companies they are talking to.
Hello sir? Do i need to have my llc established before i pitch to the angel investors or does it not matter? the reason why i want to start my llc after i get funded is because there is a certain way that i want to get it structured so i can save more on taxes but the initial cost will be $1k. so in my presentation for the angel investor, do i need have my llc already started? please get back to me...
You need to have a business entity already created. Nobody is handing you any money if you don't have a legal entity already set up. Also, angel investors don't invest in LLCs because you can't issue shares of your company. Angel investors will only invest in a C Corp because you can issue private shares, and they can buy them. Investors like to invest in Delaware C corps specifically. So remember for you to get any investor set up a legal business entity and make sure it's a registered Deleware C corp.
