It is very difficult to erase an inauspicious first impression. For that reason, ITEN highly recommends that all IT start-ups go through Mock Angel Training before approaching potential investors.
The Mock Angel program is an intensive program to prepare ventures for serious investor consideration.
To enter your company in the Mock Angel program, submit the application to participate in the program, which can be found via a link at the end of this article. A company is tentatively accepted into the program, contingent upon connecting with one or more mentors from the Mock Angel program who will determine that the company is ready for the program. (Mentors can be selected through the Mentor Match feature available on this website. Not all mentors are part of the Mock Angel mentor team.) Before applying to the program, make sure that information in your Company Profile on this site is complete and up to date.
We have posted a link to an excellent video tutorial on creating an investor pitch. Go to the Links button, and select "Raising Money," which is the second category in the list. The link to "Creating Your Investor Pitch" is the first link listed in that category.
The Mock Angel Group meets once per month with two companies scheduled for each monthly meeting. The first presentation begins at 3:00 pm. Once your application has been submitted and at least one Mock Angel is in agreement, your session will be scheduled.
The company presents a 12-15 minute power point presentation to the group of between 5 and 12 ITEN Mock Angel mentors. The Mock Angels respond to the presentation as a group of investors might with probing questions. The Mock Angels go beyond that to explain why these questions will be significant for investors and they also make constructive suggestions for improving the pitch and sometimes for changes that are needed in the company itself. The presentation and feedback period, which altogether usually take about 45-50 minutes are videoed. A copy of the video is given to the presenting company at the conclusion of their presentation, minimizing your need to take notes during the discussion. The Mock Angels also rate the company’s presentation quantitatively, on a grid that includes the following areas of consideration:
Problem/Opportunity: What problem are you solving and for whom? What's wrong with how the problem is addressed right now? How big is the need? How bad is the "hurt?"
Compelling Solution: How is your solution compelling compared to current methods of solving the problem? What's unique and special about your solution?
Competition Analysis: Who are the incumbent providers? Who are other new players? Who has market share? How are you differentiated from the older and newer players? Why will you win against the competitors?
Revenue Model: Who are your customers? What is it that you're selling to them? How do they pay: once, recurring, subscription, etc.? How much do they pay?
Marketing Plan and Strategy: How do you reach your customers? How do they know about you and your product/solution/service? How do you engage customers in your product development? How do you determine you pricing?
Sales Strategy: Web-based sales? Building a sales team? How have you acquired your first customers? Will you acquire future customers in the same way?
Management Team and Plan: Why is your team the one that will create success? What strengths and deficiencies are in your management team? How are you addressing the deficiencies? Who have you identified that will join the company?
Technical Progress: How much work remains to get your product/service complete and ready for fast scaling? What roadblocks are in your way? What technical challenges are yet to be overcome? How will you overcome them?
Operations/Delivery/Fulfillment: Do you have supply chain challenges? How do you keep your customers happy? What happens if you acquire 10 times or 100 times more customers than you anticipate? How will you scale the business and not cause service/product deficiencies?
IP/Legal Issues: What law firm are you using? How is your core business protected? Are patents filed or issued? What unique legal issues are involved with your venture?
Financial Projections and Funding Plan: How much has already been invested? How much do you need now and what will the money be used for? How much will you need in the future and for what? What will the future revenues be, future costs?
Current Deal Being Offered: How much of the company is being offered? What is the capitalization table after funding? What are pre- and post-money valuations and how do you justify your value?
Exit Strategy: How will investors realize their investment multiples? Who are likely acquirers? What are prior exit comparables and what were their return multiples? How many years until you exit?
Presentation Skills: Do the charts tell the story well and compliment the verbal pitch? Is it a clear and concise presentation showing a high level of credibility and knowledge about the business and space? Is your verbal style neither too passive nor too aggressive and do you exude confidence and commitment to the venture?
Receptivity to Mentoring: Are you open to constructive criticism and "tough love" challenges to your assumptions and strategies? Are you willing to hear other points of view and learn from what is suggested? Do you take challenges openly and seriously, or defensively? Are you actively seeking guidance from the Mock Angel mentors who offer their help?
Within a few days after the session, the company is given a summary of the Mock Angel evaluation. That summary in conjunction with the feedback captured by the video of the company’s presentation session indicate the areas of improvement needed before the company’s return presentation to the Mock Angels with the anticipation to be considered a graduate of the Mock Angel Training.
Often one or more of the Mock Angel mentors will volunteer to work with the company to address areas of weakness. In any case, the company needs to select appropriate ITEN mentors to assist them in making the necessary enhancements to their strategy and/or presentation in preparation for a second presentation to the Mock Angel group. There is no set time for this process; it takes as long as it takes.
When the company and its selected mentors are in agreement that the deficiencies identified by the Mock Angels have been addressed and the presentation strengthened in all categories indicated, the company is able to present a second time to the Mock Angel group. Supporting mentors that are not part of the regular Mock Angel group can be invited to the second round Mock Angel session.
The second presentation is again a 12-15 minute power point presentation and is considered a “best and final.” The Mock Angel team evaluates the company on a pass/fail basis. If “pass,” the company is deemed a Graduate. If “fail,” the company may continue working with ITEN mentors, but will not likely be reconsidered by the Mock Angel team.
Graduation from Mock Angel Training means it is the opinion of the ITEN Mock Angel mentors that the company has addressed all the big questions about their venture and have thought through their business challenges thoroughly enough to ask for other people’s money. (The “big questions” are reflected on the evaluation grid that the Mock Angels use to rate each presenter and are listed above.)
Companies graduating from Mock Angel training are referred to local and out of town investors who have indicated an interest in early stage technology companies successfully completing this program. A high percentage of previous Mock Angel graduates have received outside funding. Mock Angel graduates are also invited to participate in ITEN's Post Angel Program. The Post Angel Program can provide strategic connections to executives of larger corporations, strategic service providers, national acceleration programs and selected mentors who can provide experienced advice for fast scaling of the venture and access to additional growth capital.
If your company is pre-revenue, you must first complete the Business Model Validation program before applying to the Mock Angel Training, and also be recommended by one or more Mock Angel mentors.
To apply for Mock Angel Training, first make sure your Company Profile is up to date then click Here.
