By Mike Mulhall, The Entrepreneur
Do you have a great business idea but can’t find the funds to start it? An angel may be looking for you. Angel investors are individuals looking to invest their own funds into new businesses. Generally, they look for high risk, high reward startups that are in need of $50,000 to $750,000 of seed capital. (Don’t confuse them with venture capitalists. VC’s usually manage pools of other investors’ money in a fund.)
Financially, the capital an angel investor can provide upfront can allow an entrepreneur to start operations and scale quickly. However, the knowledge and experience an angel can bring to the table may prove to be even more valuable.
Most angels are successful entrepreneurs, meaning they have the contacts and insight to make your idea a success. They’ve already made the mistakes and learned from them. An angel can serve as a mentor for you and your business, and that can be priceless.
Because of the difficulty of acquiring loans in the more conventional manner, angel investing is becoming a popular option. How do you find your own private angel? Here are a few tips:
- Check out your local trade organizations – Networking is crucial to finding investors.
- Visit your Chamber of Commerce – Chamber meetings and mixers are great networking opportunities. It’s also a great way to gain local business contacts.
- Check out PartnerUp.com
- Google search – Do a quick search on angels in your industry. Your search is bound to turn up some related forums and discussion sites. These can be good tools in finding your angel.