Who gets capital – and why? In the fishing scene, such assessments are based on experience. Companisto has now evaluated for the first time how angels actually invest.
With over 340 million euros of invested capital and more than 200 financing rounds, Companisto is one of the most active private venture capitalists in Europe. Now, for the first time, the business angel network has made it measurable who gets capital – and what factors influence the decision. Companisto maps the entire investment process and can analyze what remains invisible. For the evaluation, over 50,000 investor sessions from 166 financing rounds were examined.
Would you like to find out more about the financing options at Companisto? Then find out more here!
The pitch – whether video or live – beats the business plan
Only 25 percent of investors view the pitch. But they are responsible for almost 60 percent of all investments. They are 4.4 times more likely to invest than the rest. Anyone who spends weeks fine-tuning the financial model and preparing the pitch at the same time is putting the lever in the wrong place.
A good pitch alone is not enough
The most counterintuitive finding: Startups where angels only see the pitch but don’t read any further convert underperform. The pitch opens the door – but the pitch deck has to be convincing. Rounds in which investors use both intensively achieve a 22 percent higher participation rate. And the more documents an angel reviews, the more likely they are to invest: startups with high document usage convert 45 percent better. Transparency is not a risk, but a conversion lever.
FOMO needs to be built up – especially with unknown investors
On the final day of a financing round, 42 percent of the total investment volume flows – almost twice as much as on the starting day. Three quarters of all Angels return multiple times before making a decision. This is no coincidence: FOMO does not arise at the beginning, but builds up over the term – in angel rounds as well as in VC financing. Founders who understand this structure their fundraising as an arc instead of a sprint.
Companisto provides detailed insights into investment trends and decision-making processes with the soon-to-be-released first market report on the investment behavior of business angels and shows industry benchmarks that have not existed anywhere before.
If you are looking for financing for your startup – whether seed round or growth financing – then contact Companisto.