Finding Angel Investors
The closest sources of funding for entrepreneurs starting a business are personal savings and that of family and friends. What if your options stop there? Bank financing is usually out of the picture for small startups.
An angel investor could be your savior. Get some tips on how to find them.
One of the most challenging aspects for people starting a small business is getting enough financing for their business idea. A prospective entrepreneur might have just enough savings to rent out a store as well as purchase inventory. But what about working capital while the store is yet to generate a profit to support itself? He may have friends and families to help plug the funding gap, but what if it isn’t enough? Being too small and without a business track record, bank financing is out of the picture. It is where angel investors come in.
Angel investors are wealthy individuals who help fledging businesses get off by providing them the funding necessary to get them started or going. They can invest from a few thousand dollars to millions of their personal money. They’d usually put in not just money. As these investors are usually retired businessmen or executives, they contribute their expertise and experience by helping the owner manage the business. How does one find angel investors? And what are some factors that can help him snag them into investing?
Where to Look for Angel Investors
Get insider information from members of your local business community. You may have friends who are already in the circle. They are your best source persons when looking for individuals to whom you can sell your business idea. This inside connection is important as usually, angel investments are private transactions. Information about the deal and the investors are not easy to come by. And you can’t expect angel investors to seriously deal with you unless you have a good backing from someone they know and trust.
You can meet angel investors in conferences and symposia. Attend meetings organized by angel networks where you might have the chance to pitch a business proposal. Look in the internet for angel groups and networks. While individual angels may be hard to identify, their groups are more visible. You can start from there. Go4Funding.com is one such platform. Also visit Angel Capital Association and Angel Capital Education Foundation for leads.
How to Snag an Angel Investor
Get referrals from people you know who may be these investors’ trusted sources. Naturally, a person feels more confident in doing business with somebody he knew or someone trusted by somebody he trusts. When referred, take time to establish a business relationship with the prospective angel investor.
Look for one whose experience or interest is related to the business you are putting up. You are in a good position to attract one if you are in the typical high-growth sectors such as software, biotechnology, healthcare, and medicine.
Make a really, really good and convincing business plan. If you want to develop a machine or equipment, build a working prototype. Angel investors wouldn’t risk investing in a business that lacks promise. To get an angel investor to provide you with startup funding, you have to show that the business has a great potential to make high returns.
15 Comments
- Dear Sir, My name is Miss Sheila jadoon. I belong to Pakistan. By profession I am an educator. I need angel or venture investor for an Educational institution. I can be identified through USA embassy. On request I will be more than happy to submit my business plan, to the investor. Regards, Sheila jadoon shehlajadoon@yahoo.com
- I need an angel investor for starting a restaurant at a site under my hold on contract for next ten years on highway near a big college in dehradun, india. finance needed is around 0.5 million INR.
- dear sir my name is martins osuji , i come from nigeria , by profession i am an engineer but presently working as a credit supervisor in a world class bank here in nigeria.on request i will be more happy to submit my business plan to the investors ,it has to do with hotel creation in a very lucrative location in owerri in imo state nigeria please my contact email is as above . thanks ...
- I have this deep spirit in developing a first class leisure industry in Nigeria and won't hesitate to submit a summary of my business plan to any angel investor who is interested in my idea. I will also appreciate any suggestion for easy contacts towards start up funding. I currently reside in Lagos, Nigeria.
- Hi first let me start by saying I am a mom of 3wonderful kids. I went to college to have a career but life had other plans for me. I have two businesses I would love to have. I want my kids to never want for anything. I just haven't the means to get my businesses off the ground. First I would love to own a bakery. I am a self taught bakery with amazing talent. I would love to focus on cheesecakes and cupcakes. In Oakwood,GA there is not anything like this anywhere. The other is I would love to open a tanning salon. I have worked tirelessly on a business plan for both and believe if I had the funding for either of them they would be a great success. I want to create something I could leave my kids and give them a secure future. I know I could succeed with some help
- Any genuine angel investor interested to invest 100% financing and start a new Nursing Care Centre in Malaysia. Estimated 7.5M - 10M. Business proposal plan is ready to submit. My condition is I need a job and hope that I can run this business and project under my duty. Please don't reply if you are not interested or any spam mail!! Regards Hazael
- i am starting a business of metal casting in pune . I need a promoter
- I need a genuine foreign angel investors, I am in to real estate. Property development. I need a foreign angel investor to invest with me into building houses for people to come and buy. It's profitable. Please contact me on 234-803-852-3995 or ask4pastor@yahoo.com
- Angel investor needed for gold mining in California.
- We are looking for investors to help in the start up of a gold mining project in a historically proven area of the Sierra Nevada Mts. in Plumas County, Ca. Have PPM ready to file.
- I am looking for an investor to start up a shared location for a funeral home located in phila, pa. I would be more then happy to provide my business plan and any and all information you need. I have been a funeral director for 30 years and i would like to make the money that a funeral home provides. Again i am not buying or building a funeral home. I am simply sharing an established funeral home already. I do not have to pay any monthly rent however i am looking for the necessary start up capital for advertising, computer, web site design and other items needed to get this project in the operating stage. Thank you, Robert L Muratore, eternalrest1959@aol.com
- I have a 2000 sq.ft. ready made garment store in Pune, India. I am looking for investment to start a retail chain and manufacture garments in my own brand name. I have recently converted my company into a Pvt. Ltd. company. I am in this business for last five years and have made consistent year on year growth. This growth has been achieved through repeat and referral customers only. I have not done any kind of advertisement of any sort. This growth is achieved on the basis of satisfied customers by way of our service. I am already getting inquiries for franchisee and I feel it is the right time to grow.
- am residing in kano nigeria, i been a marketer, for over 6years, i have business ideas but i need angel investor that will partner with me financially and in running of the business.
- I have some millions of dollars to invest. I am looking for a business partner or any investment opportunity. contact me at: patricamclardie88@hotmail.com
- Surajsinghbisht.2005@gmail.com email id Only a gd idea can take all of us to a greater height and to built our own individual image in the society... click of a gd idea is rear bt the the right idea click to a right person with right partner can create history... So any one interested in good idea and willingly to work with me so contact me soo
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