Angel Investor and tips to find them
The term “angel” came from the Broadway theater, when wealthy individuals gave money to propel theatrical productions. “Angel investor” term was first used by the University of New Hampshire’s William Wetzel, founder of the Center for Venture Research. Wetzel completed a study on completion of his study on “how entrepreneurs gathered capital”.
They are literally angels for those business owners or startups that would be looking for the last option when they don’t qualify for bank financing and may be carrying insufficient capital for their project.
Here are a few tips to find your “Angel investor”
-Identify your Search:
When a startup or entrepreneur, are keeping a specific “Targeted Profile” for an Angel investor in their mind concerning capital investment and project strategy, significant chances are there to find a desired one.
As per “Ralph Kroman of WeirFoulds LLP”, the typical angel investor:
- Income should be more than $100,000.
- Age group – 40 to 60 years old.
- More than $1,000,000 of net worth.
- Experience in Entrepreneurship
- Caliber to hold on the investment for up to 5 to 7 years.
- Show interest in keeping themselves active for business strategies (as an advisor)
- Should collaborate with other angel investors, bringing the total investment to multiples of individual investments, and individually invests up to $150,000
- provide a referral deal with other private investors even if the angel has chosen not to invest
- To Show relevance of their interests with the projects in which they are investing.
- Find or source deals from other’s referrals.
Risk factors should be known to an angel investor and they should be capable of bearing the same, as well as can cope with stretched time duration possessing between investments and play-off results.
-Present yourself as “the best”
It’s a common consideration that when a business has tremendous pre and post positive specifications as inputs and outputs respectively, any investor could be attracted quite easily and will be willing to take part in activities for same growth prospects, keeping in mind that development will be distributed as per their share or efforts or investments.
A startup should present themselves in front of investors that they are capable of an utmost level of their efficiency for doing their job. It will prove a substantiality and credibility to ask for any investment from any angel investor.
A previous track record (positive and impressive it must be) will surely entice an angel investor to make an appropriate investment for your ideas of business.
-Look for Collaborated Angel’s for investments:
Business Development Center, Community Futures Office or Economic Development Centre near you; may have an active group of angel investors, that could be related to your business theme.
In a group of angel investors, there is a high possibility that one or two out of them must be keen for collaborating in active mode or to syndicate with others to pool resources and share the risks associated with any business in which the whole community of investors tries to invest.
A strong social circle of your own could be effective in finding the same. A bit of research through offline and online modes in your own local geography will bring a success for the purpose.
Social Media is an effective mode to look out for required angel investors either individually or in a collaboration (like Facebook pages)
-The Internet is another Angel:
Your business idea needs to be exposed at least superficially to a wider audience and the internet is a perfect medium for this, as it has greater and bulk reach to diverse themes of populations available online.
Whenever there is a match for an angel investor in accordance with your business proposals or a deal, there is a high possibility that they will try their best to get involved with your patterns of ideas.
Here are a few websites (these websites actually offer a to make the connection with angel investors that may be interested in your business model instead of directly providing investor funding.)
Angel Capital Association (ACA) – World’s largest professional development organization for angels, This website boasts over 13,00 members accredited angel investors and 260 angel groups and accredited platforms, proving itself to be a great resource for finding angel investors throughout the U.S. and Canada.
Gust (formerly Angelsoft) – World’s largest startup network, as it claims, with over $1 billion of funding raised through their broad angel network, The striking feature is that it lets you complete a single application for hundreds of angel groups across the world.
Carrefour Capital Connexion – Basically a huge database of business projects and venture capital sources, helpful in searching for potential angel investors throughout the world. A free Registration of business projects and private venture capital is available.
Canadian Investment Network – There is a first contact fee to connect entrepreneurs with angel investors or you may choose to pay upfront and receive premium services. The confidential proposal posting is free; If they find a matching as per their desired requirements.
The BC Angel Forum – A facility of “live” presentations to pre-screened private and corporate investors with business proposals from Technology and non-technology pre-screened companies seeking equity financing of $100,000 to $1 million is available.
-Your Social presence matters as Network efficiency:
Apart from a great business model or strategy available for presentation in front of potential investors, a startup has to think about a network phenomenon, that would be able to persist whenever there a strong positive social presence of your own identity or business ideas.
It’s a common finding that a broadened network provides more chances to get the desired result due to the high probability of making a matching reflection of the business pattern with the bulk presence of a waiting investor (s). Joining a business and trade organizations and getting in touch with them, by regularly attending their meetings and simultaneously making your valuable and highly relevant inputs that could make a mark amongst them for your presence. For great networking, can join civic and community organizations.
Search for trade fairs near you on a regular basis or register yourself on an online portal that would provide you a regular update to get notified regarding the same.
While doing all this, an entrepreneur must be able to distinguish or identify a probable strong business owner, as these are the people that could be free from their own risks of the investment and may provide a surplus from their own stakes for your business as an angel investor.