Introduction

Just last week, I witnessed something unfortunate at a business event that l attended which motivated me to put out this article.

Before I delve into a summary of what I witnessed, I would like to emphasise that approaching angel investors in Nigeria is one of the many ways to raise business capital. To be able to attract the investment of these angel investors, there are many criteria that your business must fulfil such as building traction, having a solid reputation, building a solid customer base, and so on.

In addition, aside from meeting these criteria, it is important for you to refrain from doing certain acts that may repel angel investors away from your business.

Now back to the story of what I witnessed. I was at a business event somewhere in Lekki this past week and I saw a business owner lose access to a funding opportunity worth $10,000 simply because he had managed to use his actions to pursue the angel investor away from his business.

I know you are curious to know exactly what he did. That is why this article aims to explore three common mistakes that business owners like yourself make that can scare angel investors away.

What did this business owner do that you should NOT DO when you finally find an Angel Investor in Nigeria?

1. He asked them to sign an NDA: A Non-Disclosure Agreement can be off-putting to investors. It is also unnecessary to ask them to sign one before you pitch your idea to these investors. The rationale is that an idea remains an idea until you execute it. Therefore, don’t be scared to share your ideas with potential investors.

2. He harassed them with calls and text messages on different platforms: Imagine you were an angel investor and there is someone who constantly calls and texts you on all platforms, and picture how that would make you feel. There’s a high likelihood that your predominant emotion would be irritation rather than excitement. This clarifies the importance of avoiding any form of harassment directed towards these angel investors.

Instead of harassing them, you should either get someone to introduce you or choose one mode of contact, we recommend email or LinkedIn message, and all you do after this should be to follow up via the same platform and if the potential investor continues to ignore you, find another investor.

3. He was dishonest: This is the worst thing to do as a founder because dishonesty will not only hurt your chances with this investor but it can affect your chances with other investors as they are always connected. Therefore, it’s always best to be honest, to enable you to have a chance with other investors.

If you enjoyed this article and would like to know more about the right approach to attracting angel investors for your business, including how to get angel investors in Nigeria, click the link here for a delightful surprise.