Venture Capital Angel Investors: An Entrepreneur's Best Friend for Venture Capital - Angel Investors

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

Does your company need to raise venture capital angel investors and can’t obtain bank financing? Whether it is a start-up, development stage or expansion stage company, if your funding needs are less than $1,000,000, then you should start your search with Angel Investors. You should access an Angel Investor directory or association to start your research and acquire names and addresses. This will help you locate Angel Investors in your area and save you hours of time.

Start your research by locating the different Angel Investors in your home state since it is more likely that you will obtain financing from them, rather than those that are several states away. Look for an Angel Investor guide, group, fund or association and keep track of your information. For more background information check out Definition of Venture Capital.

The process begins by submitting your business plan and if there is interest, a meeting and then due diligence. Angel Investors usually conduct less due diligence than Venture Capital Firms and more due diligence. Preparation of the Business Plan is a Vital First Step in your quest for capital, so a great deal of time and effort should be spent preparing the business plan.

An alternative to using a Business Plan is to use The Executive Summary. This is a good way to get your “story” out there to interested investors. Many of my clients send out an Executive Summary to help narrow the field of potential investors before they send out their full blown Business Plan.

Here are some Essential Tips for Raising Capital from Venture Capital Angel Investors that will increase your funding chances and help you negotiate, even before you get to the term sheet stage.