Get the 411 on Finding an Angel Investor That’s Right for Your Business
Angel investors are true to their names, providing capital to small business startups in exchange for ownership equity or convertible debt. They can be a great, no-strings-attached asset to small-business owners, but with this kind of influence it’s important when finding an angel investor to find the right one for your business.
When trying to find an angel investor the best place to start is in your industry. Look for conferences related to your field, and visit online angel networks like AngelList. You can also find other like-minded entrepreneurs, lawyers, accountants, venture capitalists, or investment bankers that might want to invest. Utilize social media sites like LinkedIn to establish connections, and be sure to shake the hands of everyone you meet, because the most solid ways to find investors is through colleagues and friends. Avoid blindly emailing investors, they get hundreds of emails from faceless email addresses. You have to make yourself stand out.
Crowdfunding, and other types of angel networks can be very lucrative if you have a business or product that will appeal to a certain clientele. This sort of investment source works best with a business that has a lot of entertainment value that clients can get excited about. You can get people pitching in with smaller amounts, but that means you need more and more investors, with ways to reward them for their contribution. Look at other types of businesses that use this method and see if your startup might be able to benefit in a similar way.
For individual angel investors, the important thing to look for is someone that is passionate about your project. After all, that’s exactly what they want to see from you, and that passion means they will be likely to help you far beyond a simple check.
These individual angel investors are looking for interesting concepts that haven’t been done before, or are being presented in a new way. Do your research on potential investors to see if your startup is something they’ve funded in the past, or if it’s something that would benefit them.
Above all, be patient. If you find someone who is interested in investing in your business buckle in and get ready for meetings, negotiations, numbers, and . . . basically the ability to prove yourself as a competent entrepreneur with a valuable service/product. Remember, angel investing is very risky, you need to be able to make promises you can keep. Do plenty of research on what you need to prepare for an angel investor, and what will help make your pitch stand out.
P.S. Want to meet potential angel investors and learn all the best ways to get your business funded? Join us for W.E. A.R.E. (Women. Entrepreneurs. Achievers. Risk Takers. Experts.) – Women Entrepreneur Accelerator Tour in Irving, TX June 23 – 25. We will have lots of great advice from some of the country’s top experts on getting funded. Who knows . . . you might find your angel investor there. LEARN MORE HERE