Angel investors are not exactly the soft-hearted angels of yore who will grant your wishes with the swish of their wands. Or was it the fairy godmothers? Anyways, you will want to find your own angel investors who will pour their money into your business with the expectation of actually making a profit within the medium-term period of 5 years at least.
You must approach angel investors instead of the other way around for obvious reasons.
But where will you find these angel investors? Here are a few tips in this regard. Keep the Profile in Mind.
You may not know it but your neighbor may well be an angel investor.
According to experienced entrepreneurs and business experts, angel investors fit into a certain profile characterized by the following attributes:
- Income exceeds $100,000 per month
- Net worth in excess of $1 million
- Age 40 to 60 years old with many actually retired from the business
- Possess entrepreneurial experience or have histories of successful careers in top management in large corporations
- Enjoy the opportunity to advise the present generation of entrepreneurs as well as be in on the action
- Likes to invest in a familiar industry
- Source deals through referrals from other angel investors
Thus, if you find an angel investor but he chooses not to invest in your company, you can ask for referrals. It must be emphasized that angel investors may be a single individual acting alone or a group of individuals who pool their resources into a common fund.
Why look far afield for angel investors when you may have many in your local area? Many angels will invest their money on local start-ups because it allows them the opportunity to be directly involved with the companies’ operations, if and when there is a need for it.
You must be prepared for your angel investors’ questions, issues and concerns when it comes to running your business. Always remember that they have a stake in your company’s success and, thus, only wants to ensure it. Besides, when your angel investor today is satisfied with your performance, you will be referred to the larger network of angels on the national level.
As previously mentioned, angel investors nowadays do not fly solo. If the first angel investor you approached was not amenable to your business idea, ask for referrals to other angel investors who will listen. You are more likely to get referrals since most angels like to see start-ups become successful.
What can you do? We suggest joining trade and business organizations since these are composed of other businessmen who have knowledge of where to find angel investors. Join civic and community organizations as angel investors are also active in these groups. Just get your name, face and idea out there!
Last but not the least, you should take advantage of the online business communities. You will find websites dedicated to helping entrepreneurs like yourself get off the ground running. Even the keywords “angel investors” will take you their sites.
In the end, it is easy to find angel investors but it is not as easy to convince them of your company’s profitability. But that’s for another article.