Finding Angel Investors may be the key to your
Funding Needs.
But where do you find them?
Why is finding Angel Investors to fund your business more viable than looking
for venture capital or a loan? Angel investors can be very helpful to get your
new business off the ground - and they are interested in taking small businesses
and growing them towards a defined exit. That could be taking a business public
or selling it.
But where and how do you go about finding angel investors?
It's true there are angel networks online, and while you can have success
connecting with angel investors at Angel network sites like Funding Universe,
some of your best opportunities to meet an angel are through face to face
contact.
Many once small businesses such as Amazon and Apple started out with the help
of Angel investors.
How to find angel investors:
- Start close to home - Family and friends:
They care more about you than strangers do, and they know you better. Your
only concern here is to not burn bridges with friends and family. But then
you shouldn't be looking to burn bridges with anyone. The key here is to
make clear that business is business and is separate from personal matters.
Treat any business partner or shareholder as such and make clear all terms
of business such as repayments and profit-taking terms.
- Find Angels in local business networks and chambers of commerce:
You stand a good chance of linking up with potential investors at community
business networks and chambers of commerce. Since these individuals are not
family or friends, and likely don't know you, you will need to establish
credibility before they will be convinced to invest. Some things to consider
before approaching potential angel investors:
- have a product prototype if you your business idea focuses on a new or
innovative product
- have samples of an existing product you plan to sell
- produce testimonials from happy users or clients of a service to prove
that there is a demand and that you can satisfy it
- Develop a strong business plan that demonstrates your ability to profit
and grow
- Be prepared to give considerable control of the management and direction
of your business to your Angel, as they will expect this along with the
expectation of a handsome return on teir investment. Keep in mind that your
Angel may have experience taking a startup and growing it from the ground
up, and that you can benefit from this.
- Discover your Angel's niche:
Angels have passions like the rest of us. Typically, seasoned Angels tend to
stick to a particular industry. Identify potential angels that are attracted
to your industry. Your chances of winning support from this type of Angel
increase naturally.
- Register for an account at Funding Universe - a reputable
matchmaking service for Entrepreneurs and Angels:
Funding Universe helps entrepreneurs design their approach and presents
their plan to its wide network of investors. The membership fee is worth
paying to have your business presented to a pool of interested and active
investors. Remember, investors are willing to take on additional (but
managed) risk for better returns on their money than simply keeping it in
the bank. Funding Universe acts as a matchmaker between you and investors.
But it does more than that too. It helps you carefully plan your pitch to
the right kind of investors, based on your specific needs.
It's free to join Funding Universe, but don't underestimate the value of
joining the paid subscription service, which gets your plan in front of
hundreds of potential investors, while saving you the time and money you
would have to spend finding angel investors on your own.
Finding Angel Investors who are ready to fund your business is not the
easiest task to accomplish. But then you shouldn't be looking for easy money in
the first place. Starting a business takes effort and hard work, careful
planning through a strong business plan, and then securing private business
financing.
Assuming you have all the right ingredients for a successful business in
place, you'll likely stand a better chance obtaining funding from an interested
Angel than securing a loan from a bank.
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