Angel Investors are people who can provide capital for a new venture or startup without expecting immediate returns. To be specific, angel investors can fund your startup in the early stages, and in return, they ask for some equity in your project.
Angel Investors understand that it takes time for a business to expand, and they act as a type of Equity Financing.
Angel Investors are wealthy individuals who invest in some new companies in exchange for an ownership interest with the hope that the company will succeed later and become an asset to them.
If yours is a startup with a fresh and unique concept, but you lack the capital to push it forward, Angel Investors can be extremely beneficial for you. Since there are a growing number of startups, Angel investors only invest in startups they find fascinating.
Angel investors usually fund companies in which they see a real potential to grow over the years.
Angel investors can provide the funds that you need for the tools, market research, and other necessities. These funds procured can help you develop a secure and strong base for your startup. The foremost benefit of finding supportive Angel Investors is that there won’t be any interest tied up to the amount they provide.
Let us look below at the ways we can find angel investors:
ANGEL INVESTORS WEBSITES
There are certain websites through which you can get in touch with Angel Investors. The below-mentioned websites will help you to get contacts of different angel investors who might be interested in your startup:
- AngelList – https://angel.co/
- Indian Angel Network – https://www.indianangelnetwork.com/
- SeedInvest – https://www.seedinvest.com/
- Angel Investment Network Blog – https://www.angelinvestmentnetwork.net/
- Golden Seeds LLC – https://goldenseeds.com/
INVEST IN COMPANIES WITH SIMILAR VERTICAL OR LOCATION TO YOUR STARTUP
When you are trying to find Angel Investors, you can mention the location and the type of your startup. You should also select the lowest amount of funding received as $10K; it is essential so that it only shows well-funded startups.
Further, you can search for the people who invested in these startups; you can make a list of all the investors you need to contact.
USE LINKEDIN TO CONNECT WITH PEOPLE WITH A WIDE NETWORK OF INVESTORS
LinkedIn can be a great tool where you can get in touch with numerous angel investors. You can always check out the connections of your friends or family who work in an established company and know some investors.
You can filter the connections by typing “Investors” in the keywords tab. Further, you need to go through their profile to learn about their career, businesses they are a part of to see if they would be interested and would act as an asset for your company.
REFLECT ON HOW INVESTORS CAN FIND YOUR STARTUP ATTRACTIVE TO INVEST IN
Looking for a good network of Investors will surely help you, but it is essential to reflect on your startup as well. There are certain points investors keep in mind while investing; make sure you tick these off:
- A solid business plan – A fresh idea to start your business and smart strategies about how you will tackle problems in the future. Starting a new business gets much more easier with these simple things.
- A strong and creative team – it is important to have team members that will be an asset and not a liability. Every member should be contributing to the growth of your company. This will ensure that you are well prepared and will bring value to your company.
- Prove that your company can take up a strong position – channelize your ideas and showcase your experience and background; your skills will help you become successful.
Before searching for an Angel Investor, it is important to know if they would be an advantage to your company. You need to do your research properly. An angel investor must come as a boon to the idea budding in your head. It is very important to take these decisions carefully.
In some cases, it might not be worth the time you spend looking for the perfect investor. Sometimes, there is a risk of losing control over your company as angel investors are also looking at it as a personal opportunity. Therefore, proper contract and legal binding should me made. Transparency is the key to success.