Locating Angel Investors

© 2006 by Joseph B. LaRocco; All Rights Reserved.

Angel Investors are usually entrepreneurs like yourself, many of whom raised venture capital and launched their business to success. Don't count on raising more than $1,000,000 of Angel Venture Capital all at once. Usually $200,000 to $500,000 is a more likely raise during your first round of financing. But how do you find these sources? An Angel Investor directory or association is a good place to start.

If you are looking to raise $500,000 or more try a hedge fund or brokerage firm. You need to network as much as possible with other Funding Sources. Always look for funders that can give a short response time. Many companies have wasted three or four months with one large venture capital firm only to learn they will not get funded. What's worse, the company may have explained too much about their business and competitive edge to a large organization that may now somehow use that against them with other companies they have funded in the past.

There are even some online websites that have a number of registered Angel Investors that are looking for companies in which to invest. You don't necessarily get access to their names and addresses, but you submit your Business Plan or company information and they review it. If they are interested then they contact you.

It is best to start your search in your own home state. It is rare that an investor will invest in your company without meeting you face-to-face, so this will lessen the travel burden. Also, like big venture capital firms, Angel Investors can usually give some managerial advice and help you with strategic relationships. They have already been there and done that. There experience can be of great assistance.

Click here for a good resource to locate Angel Investors in your State. I will keep adding to this list from time to time. Also, see my contact information if you would like to contact me about adding your name,as an individual, corporation, LLC, group or association.

Another good resource for gathering names is to join Venture Capital forums or groups. These groups whether on-line forums or informal face-to-face meetings are a great way to network and find potential funding sources. At the same time you can pick up some valuable information and adjust your approach to raising capital if you feel the need.

Also, look for seminars or conferences where other companies are doing presentations to try and raise capital. Learn from them, ask them questions and listen to what other investors are asking them.

Remember that the process of raising capital is long and difficult. You have to stay positive and almost relentless in your search. It will likely take you several months to raise capital, but not all companies are successful in raising the amount they need and many raise no capital at all.

Sometimes the best approach to raising capital is to first execute your business plan on a small scale to show it works rather than trying to raise financing for a pure start-up. You will have much more credibility and will find it much easier to attract potential investors.