Let’s be real you can’t spend every penny from your pocket to grow your restaurant business. You will need external financial support.
You can approach angel investors who would love to invest in your business if you have a proper plan. You can find investors through the Malaysian Food and Beverage Expo, the Malaysian Business Angel Network, and Apps like PitchIN and Angel List. You would need to work on your pitch and make sure that you highlight all those numbers that make you worthy of their investment.
Read more to find out how to convince angel investors to transform your restaurant business financially.
Who Are Angel Investors?
Angel investors are individuals with money to invest in businesses they believe in. They are different from banks or big corporations. These investors often want to help startups or small businesses grow. In exchange, they usually take equity (ownership) in your restaurant or expect a return on their investment when your business grows.
Many angel investors are experienced entrepreneurs themselves. They look for businesses with strong potential and passionate owners. Restaurants, especially those offering unique cuisines or concepts, can attract these investors
How Are Angel Investors Found?
Angel investors don’t always advertise themselves. But they are out there. Here’s where you can find them:
- Networking Events and Food Expos
Attend business meetups, food festivals, or startup expos. For example, Food & Beverage (F&B) Malaysia Expo is a great place to meet potential investors. - Angel Investor Groups
In Malaysia, groups like the Malaysian Business Angel Network (MBAN) connect entrepreneurs with investors. MBAN has supported over 200 deals in the last few years, with investment sizes ranging from RM50,000 to RM500,000. - Online Platforms
Websites like AngelList and pitchIN Malaysia are great for connecting with angel investors. PitchIN has helped Malaysian startups raise over RM150 million since 2016. - Friends and Family
Sometimes, people in your circle could be interested in investing. While this might feel awkward, friends or family can be your first “angel.”
- Build Relationships
Finding angel investors is not just about presenting your restaurant pitch. It’s about building trust. Investors want to know they can rely on you. Join business networks or community groups where you can meet people casually before discussing investments. LinkedIn is also a powerful tool for building connections in the business world.
How to Find Angel Investors in Malaysia?
Understand the Malaysian Market
In Malaysia, the restaurant business is booming. As of 2023, the F&B industry grew by 7%, with Malaysians spending RM35 billion annually on dining out (source: Department of Statistics Malaysia). This shows there’s potential for your restaurant to thrive.
However, angel investors in Malaysia prefer businesses with scalability. They often ask:
- Can your restaurant expand to multiple locations?
- Does it offer a unique dining experience or product?
Target the Right Investors
Not all investors are the same. Some might prefer tech startups, while others focus on lifestyle businesses like restaurants. Target those with experience in F&B or hospitality.
Start by reaching out to local investor networks like Cradle Fund or MBAN. These organizations often hold events or webinars where you can pitch your restaurant.
Use Local Success Stories
Take inspiration from other Malaysian restaurants that have secured funding. For example, myBurgerLab grew from one outlet to multiple locations across Malaysia. They started small but attracted investors by showing consistent growth and innovation in their menu.
How to Convince Angel Investors for Restaurants?
Show Clear Financial Records
Be honest about how much your restaurant’s sales and sales margin is. Be honest about your monthly sales trends and also explain how you’re planning to grow your revenue. You should have a logical plan along with the data to convince them to invest in your restaurant.
Highlight what makes your restaurant unique
There has to be one Unique selling proposition of your restaurant. Either it can be that one dish or ambiance that makes you stand apart from all other restaurants. You need to show them that it would be wise for them to invest in your restaurant because this USP will be able to pull more people to your restaurant. A strong reputation can back your restaurant up.
Explain how you will use the funds
You need to tell your investors how you will use this money. Be specific about your goals if you want to open a new branch or upgrade the equipment and what results they can expect from this. It would be even great if you can show some numbers or projections of the usage. They can confidently invest in your restaurant if you show positive projections.
Build Trust
You have to build trust among them by showing them how committed you are to your restaurant. Express more through moving stories. For example, if you have used your savings or you’re working hard every day then mention that. You also have to tell them how you’re going through difficult times like how you’re going to handle sales during high inflation?, how you’re going to win back lost customers etc. A restaurant that is actively working to solve problems and dealing with difficult situations would convince them.
You’ve read about how you can find Angel Investors for your restaurant. You can find angel investors through apps like pitchIN and Angel List. A lot of expos keep happening in Malaysia and you can easily network with like-minded investors who are looking for some profits. All you need to do is prepare a convincing pitch with all the details covered like financial health, future risks, your plan to deal with risks, and the results that you will achieve through their investment. If you want to start small then start by approaching your family and friends and asking them to invest in your restaurant. Build trust among your investors by being honest with them.
