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Do angel investors require a business plan?

Unlike venture capitalists who typically require a robust business plan, traction or a proven entrepreneur before considering backing a start-up company and who may have to internally ‘sell’ a deal to other partners at the firm, angel investors can make a quicker decision to invest. While a full business plan is optional, it is generally necessary to provide a succinct one-page executive summary, in addition to your oral pitch. Your executive summary should clearly state:

  • a company’s product or service
  • the entrepreneur’s background
  • market opportunity
  • the entrepreneur’s vision for growth
  • why funding is required and how it will be used
  • business model that explains revenue streams
  • competitive overview
  • sales projections