It takes more than getting involved in an online funding community to attract the attention of angel investors. In fact, your chances of finding the kind of investors you’re looking for this way are virtually nonexistent. Why doesn’t this work? The answer is actually pretty simple: angel investors almost invariably choose to invest in their immediate vicinity, since they know their own local markets best.
You may be wondering how you can best attract angel investors if going online isn’t necessarily the best choice; the following methods are a few of the most reliable:
As they always say, it’s who you know, not what you know. While this isn’t entirely the case, since investors will want you to know your industry inside and out, but connections definitely matter. Referrals are usually the easiest way to meet potential investors. A prospective investor is much more likely to be favorably disposed towards your venture if you’ve been referred to them by someone they know and trust.
If you don’t have the right connections already, that’s where networking comes in the goal is to develop these connections by meeting the kind of people you want to attract as angel investors. You need to mingle and present your ideas to them without giving away any proprietary information which could be put to use by competitors. The more people who learn about your idea, the better your chance of being referred to an angel investor who is likely to be interested in your business.
The US alone is home to more than nine million investors; most of these individuals are retired executives and business owners. You may want to do some research to find retired executives in your area and get in touch with them to make your pitch. Since they have experience in the business world, they will have knowledge about how to launch your business as well as the financial resources your venture needs to get off the ground.
Business owners are also a good bet if you’re looking for angel investors, since many business owners have liquid assets and would like the opportunity to branch out into other ventures. You can search for business owners on your own at no cost other than the time required to call local businesses or you can pay a company to do a targeted search of businesses in your area on your behalf.