10 Steps to Finding Angel Investors for Your Business

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10 Steps to Finding Angel Investors for Your Business

Getting started with a new business requires a lot of patience, effort, time, and money. Even if you have a great startup idea in your mind, you can’t turn it into reality without required financial assistance. This also applies to the circumstances where you need to grow your existing business.

The amount of investment one may need depends on the type of venture. One of the most common sources for such funding is the angel investor. As the name suggest, these investors are the angels for startups and newly established businesses. 

Almost every small business needs additional funds or capital to sustain its growth. In this scenario, thinking of an angel investor is common approach and a viable option. 

If you have no idea as how to find angel investors, just take a look at these essential aspect that can help you to win an investment.

  • 1- Looking for an Angel Investor

There are numerous ways to look for an angel investor. In most of the cases, finding one depends on the fact that whom you know or at which platform you want to present the material. Entrepreneurs who can find Angel Investors through their colleagues/friends through crowdfunding websites or online networking are lucky enough to kick start their business.

There are numerous ways to look for an angel investor. In most of the cases, finding one depends on the fact that whom you know or at which platform you want to present the material. Entrepreneurs who can find Angel Investors through their colleagues/friends through crowdfunding websites or online networking are lucky enough to kick start their business.

  • 2- What Type of Angel Investor you Need

If you are looking for an angel investor, be clear as to what kind of investor can serve the purpose. It would be much better to keep in mind the amount of funding and other similar aspects.

When you are planning to persuade an angel investor to release funding for your startup, make sure to chalk out an impressive business plan. Try to outline various factors including how you will use the investment to boost your business, and draw profits. By preparing yourself for getting the investment, you can actually convince your investor that their money will be used wisely.

  • 4- Keep your Documentation updated

Investors are normally interested in the financial statements of a company such as ownership, legal structure, and any outstanding debt. So, make arrangements to keep these documents available whenever required. This will accelerate the whole process and save you a significant amount of time.

  • 5- Whether your Company Fits the Profile

Before striving to Find Angel Investors, make sure that your company fits the profile. Financing a start-up is a risky move; hence, investors are looking to generate maximum return from the investments. This is the reason angel investors usually prefer those startups, that are capable of generating 5 to 10 times more profit. Hence, your business must have that type of potential to attract these investors.

  • 6- Prepare your Business

As an entrepreneur, it’s not likely for you to get a second chance to pitch the same investor. Therefore, consider it as your first and last opportunity to convince a particular investor. It has been normally observed that angels invest in such a company, which presents a great idea. Besides, a good team and previous successful ventures also cast a positive impact over the angel investors. So, be prepared to highlight your business in a persuasive way.

  • 7- Build Relationships
Build Relationships

This is essential, as when you start building relationships with the angel investors prior to asking them to invest, you can improve the chances of getting the required funds. This will ensure that a sense of confidence is there when you ask for an investment. The investors will know what you are capable of and what you have achieved, making it possible to streamline the funding process.

  • 8- Prepare an Engaging Elevator Pitch

For the angel investors, time is money. Therefore, create a compelling elevator pitch that is brief and majorly focuses on the problem faced by the client and how your product can resolve it. Moreover, while pitching investors tell them what you have achieved so far and why they should invest in your business.

So, make sure to prepare your elevator pitch and do the homework. You need to get all the information regarding the industry and competition you may face. This will give you the confidence to answer any question raised by the angel investors at the time of pitching.

  • 9- Find Angel Investors that are Close by

Investors normally prefer to put their money in a local business. This allows them to actively participate in such a venture and guard their interests. So, try to interact with the angel investors of your own city or other close by areas.

  • 10- Follow a Realistic Approach

Overestimating the worth of your business is surely a deal-breaker, especially when you are looking to Find Angel Investors. This suggests that you should evaluate and present only the measurable success that you have managed to get in the past. Even though investors pay attention to the potential growth of a business, the true value of a company still matters.