Every business needs a capital to start and maintain high-quality productions. This is why many startup owners want to find an angel investor. However, looking for one is like finding a pearl in the ocean.
Here are some tips on how to find an angel investor.
Know whom you’re looking for.
You need to know the characteristics of an angel investor that you must look for. According to WeirFoulds LLP’s Ralph Kroman, a typical investor is around 40 to 60 years old with an income that exceeds $100,000. An angel investor usually has previous successful entrepreneurial experience and likes to give advises to the entrepreneur he is investing in.
Add to that, the angel investors understand that it will take several years before their investments will pay-off.
Angel investors like to invest in businesses that are just near them. Since they usually want to get involved too, they will want to invest in a company where they can just drop by and talk with the owner and other principals.
Usually, entrepreneurs get referred to angel investors. You need to get involved in local business, trade fairs, events, and social community to find a person who will refer you to an angel investor. If you don’t know whom to approach, you can focus on business owners. Business owners may also become angel investors.
Angel investors sometimes are in a group
Many entrepreneurs think that angel investors invest on their own. However, there are also many angels who are part of an informal network or syndicates. They pool their resources to share the risks.
Use the internet
You can hook up with angel investors in other ways. You can make a proposal and present it to a wider audience. There are groups of investors that you can reach out to online such as Angel Capital Association (ACA), The BC Angel Forum, and Gust (formerly Angelsoft).