When presenting to angel investors, it is important to understand the terms commonly used when evaluating an investment:

Definition of preliminary prospectus

Preliminary Prospectus is the offering document printed by the company containing a description of the business, discussion of strategy, presentation of historical financial statements, explanation of recent financial results, management and their backgrounds and ownership. The preliminary prospectus has red lettering down the left hand side of the front cover of the prospectus and is called the "red herring."