Entrepreneurs seeking angel investment put a huge effort into perfecting their pitch… but Katie Nicholson, investment director at Gateway Angels in Liverpool, says what happens after the pitch, and the detail behind the story, is just as important.

BBC’s Dragons’ Den has done a great job of demystifying the initial process of pitching for investment from business angels.

The programme is all about the pitch, as that is the bit that makes the best television. However, while the pitch is important, particularly when it comes to demonstrating passion, commitment and vision, experienced investors will always look beyond the presentation and into the detail.

Gateway Angels is part of Liverpool-based MSIF and has been connecting angel investors with high-growth potential businesses since launching as the LCR Angel Network in 2018.

Angels are typically successful entrepreneurs, senior executives, or experienced professionals. Some are looking for alternative investment opportunities, while others are motivated by the chance to support and mentor the next generation of founders.

While investors will be impressed by strong presentation skills, they also know that success is built on more than a compelling pitch. Once you have captured their attention, the next stage is demonstrating the strength of the opportunity behind the pitch.

Here are three things business founders often overlook…

Know your numbers

This is where you demonstrate that you truly understand the detail behind the vision. Angels want to understand not only your growth ambitions, but also the assumptions that sit behind them.

Revenue projections should be ambitious yet credible. Investors will want to see the workings behind the numbers and understand exactly how you plan to achieve them:

• Costs and cashflow are equally critical.
• What are your initial start-up costs?
• How quickly can you begin generating revenue?
• How much investment are you seeking, and exactly how will it be spent?

Most importantly, how will you demonstrate that the capital will be used effectively to drive growth and create value?

Founders do not need to know every answer immediately, but they should be prepared to explain the rationale behind their forecasts and assumptions.

Be clear on what you are asking for

It’s not enough to simply say you’re raising £500,000.

Investors need a clear understanding of why the capital is required, how it will be deployed, and what measurable milestones it will help the business achieve. What exactly will the funding unlock?

For example: “This £500,000 will fund product development for 18 months, increase our monthly active users from 5,000 to 50,000, and take us to monthly cash-flow break-even.”

That level of specificity gives investors confidence that there is a well-considered plan behind the fundraising

Think beyond the pitch

Raising investment is rarely a one-meeting process.

Founders should be prepared for detailed questions, rigorous due diligence, and ongoing conversations about their business, market opportunity, competitive landscape, and plans for growth.

Investors are looking to understand not only what your business does today, but where it is heading and how you intend to get there.

And they’re not simply going to leave a bag of money on the doorstep and disappear. Angel investors are often highly engaged supporters of the businesses they back, bringing experience, connections and strategic insight alongside capital.

The initial pitch is therefore not the end of the conversation. In many ways, it’s only the beginning.

Gateway Angels supports ambitious early-stage businesses through pre-seed and seed rounds, with total investment rounds ranging from £50,000 to £1m. Investors provide both financial backing and practical support to founders looking to accelerate growth and achieve their next stage of development.

READ MORE: Business angels back Kavita’s ethical mission

READ MORE: Angels go nuts for Liverpool snacks venture

In January, Gateway Angels launched a bespoke digital portal connecting high-quality, early-stage founders with a growing community of experienced angel investors.

To find out more about raising investment or becoming an angel investor, visit the portal here.