How To Find Angel Investors for your Business Idea
If you read our previous blog post, you’re probably well aware of the benefits of obtaining venture funding through angel investors. Among other things, angels are willing to accept high-risk ventures, they bring experience and expertise to the table, they can get you money fast, and there’s some tax benefits that aren’t found in traditional startup loans. But the question remains, how to find angel investors who are willing to invest in your bold new idea?
How to Find Angel Investors? Ask Your Friends
Sometimes all it takes to find an angel is to bring up your business idea to your friends. Assuming they are an actual friend and not just acquaintance, they will probably trust you, meaning it’s easier to pitch high-risk ventures to them. Don’t be afraid to call up some of your friends whom you think would be interested in investing in your idea and pitching your proposal. Even if they say no, they may point you towards other angel investors who will say yes.
Ask Your Family
Another potential source for angels is your family. Some entrepreneurs automatically turn their heads at the thought of asking family members for money. After all, we all know the dangers of mixing personal and professional relationships together. When it’s done right, however, obtaining venture capital through your immediate family can prove to be a win-win scenario for both you and the investing family member. You’ll benefit from fast capital (probably with a low interest rate), while your family member receives a monetary gain when the business succeeds.
Angel Investor Networks
Did you know there are entire networks of angel investors, many of whom are eager to roll the dice with the next big idea? Whether you’re on the east coast, west coast or somewhere in between, chances are you can find a network by searching online. Just pull up Google and search for “your city + angle investor network.” Call around to some of these networks to see if you can schedule a meeting. With a little luck, you should have no problem finding an angel to invest in your idea.
Lastly, try searching for angel investors who are closely related to your business’s industry/niche. This method requires a bit more work, and there’s no guarantee you’ll convince them to give you money, but it’s always worth a shot. Using the Internet and your direct contacts, look for individuals (not financial institutions) with experience in the industry and pitch your idea.