Can there be your small business that hasn’t needed more capital at some stage of development? And will there be your small business owner who hasn’t looked at angel investors as an ideal supply of the capital needed? But locating angel investors isn’t like locating clams on the beach; the research is more similar to finding the pearl. Here at Info, some ways to get angel investors who are more likely to want to purchase your business.
1. Know Who You’re Looking For
Your odds of connecting with the angel investor you will need are likely to be far better if you hold this account of the “typical” angel investor in mind. Following Ron Kroman of WeirFoulds LLP, the normal angel investor:
- Comes with an income that exceeds $100,000
- Is 40 to 60 years old
- Features a net worth over $1,000,000
- Has previous successful entrepreneurial experience
- Expects to carry on the investment for approximately five to seven years (although some angels desire to “cash-out” after only a few years)
- Enjoys advising the entrepreneur and wants to be the main action
- Invests as much as $150,000 but may take part in a syndicate of other angel investors bringing the complete sum expense to multiples of specific opportunities
- Refers offers to different private investors even though the angel has opted not to invest
- Likes to purchase industry with that your angel is familiar
- Sources deals through referrals
Angel investors try to find companies with growth and export potential, says Allan Riding, a professional angel investing and professor at Carleton University. They understand that it may take a long period before their investment will probably pay off – although, in addition, they expect to be well compensated for his or her risk.
2. Look Near Home
Because so many angel investors prefer to play an energetic role in their purchase, they prefer to purchase businesses near home. “An angel desires to be nearby to allow them to drive over to keep in touch with the principals,” says Jim Orgill, managing director of advanced technologies for the Business Development Bank.
3. Network, Network, Network
Typically, you have to be described as an angel investor. They’re not hanging out on the road waiting to help keep touching whoever comes by. So to get angel investors, you have to get to learn the right person (the one who can refer one to the angel investor you’re looking for), which means immersing yourself in your neighborhood business and social community.
Concentrate on business owners – as they’re individuals who may be or become angel investors themselves or know an angel investor. Join company and business organizations and often attend the meetings. Joining social and community organizations may also be well suited for networking. Attend business fairs and events. Get that person and your title on the market and match as numerous people as possible.
4. Understand That Many Angels Do not Travel Alone While few angel investors invest entirely by themselves, many operate as part of an informal network or syndicate where they can pool their resources and share the risks.