Apparently only 2% of business plans sent to angel investors get funded according to a UK study (see page 6).
Perhaps more interesting is the breakdown:
- 60% are rejected after a 30 minute review
- 25% are rejected after a 3 hour appraisal
- 10% are rejected after a full day evaluation
- 3% are rejected following failed negotiations
- 2% succeed in raising funds
So 60% never make it past an email inbox, and a further 35% stumble at either the pitch or the follow-up question level, leaving only 5% to reach meaningful discussions. And even then, you only have a 40% shot of closing.
What is going wrong?
Over the next few weeks, Maroon CFO will look at the typical mistakes made by entrepreneurs at each step of this process.
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