How to Find Angel Investors


To make sense for one’s deal, one should always try to follow the suitable criteria for finding angel investors. Like venture money firms, Angel Investors are also looking for new startups and exciting fresh opportunities and are comfortable in investing. It may take some time to find some angel investor but the greater detail working always helps in getting good response, mostly the investors try to find about the location, market size, traction etc. before investing in any firm. The angel investors can be categorized in some classes, few are very much interested in really starting companies which have no past record while there are others who always want to invest with some working companies having some record in the market.
Industry wise searching of Angel Investors
Most of the investors are industry specific in their job. As per the conditions one may be expert for some particular business and not in other, hence finding the right investor for you is a very important task. Suppose you approach an investor who deals in electronic manufacturing market and ask him to invest for a real estate deal, what’s the point in doing so, he will at once reject the proposal as he cannot figure out what exactly you are trying to say. So always try to filter out the angel investors of your choice according to the industry they deal with and what proposal you are going to present before them.
Angel Investors Nearby
Once the list of investors is filtered out according to the industry, the next step to find who is closest to you. Yes, it’s a good practice to find angel investors who are nearby to your place and who can be easily met with, if needs arise. Most of the angel investors themselves focus on the deals which are close to their region, however they also write checks for those who are far away but it’s very less in number because it would pose difficulty for him to get in contact with the owner or monitor the progress of work and the future of his money invested.
The Deal Size Criteria
Angel investors differ in the amount which can be invested by them, like most of the angel investors in starting businesses may give up to $ 30000 of written checks. If someone wants to go for a higher amount, he will have to do a thorough search online on various search tools as per the amount he wants to be invested. There are certain investor groups also which can give up to two hundred thousand dollars but then their demands and requirements are also at the upper end, actually they form an entirely different class of investors.
Make a thorough portfolio study
Normally, the angel investors don’t make it public about how much they will invest in a business as the venture firms always do. So to figure out whether some investor will fulfill your cause, there needs to be a study of different portfolios to find out the historical investments made by them and also to see what the areas in which they normally invest are. Once you have got info on the amount and the industry, then you can approach him with your idea. In case you are not fitting suitable on some criteria, then also you can try to convince him for taking a slight risk and creating interest in the field.
Ranking the Search Results
After the important steps completed as above, next is the time to start with the meetings with the angel investors. To do this, there should be a ranking like those who are close to your place are on top ranks, as you will meet them first and then comes other criteria like industry and the maximum amount which is normally funded by some investor. The ranking process significantly helps one in getting the best results as it tells about the investors according to the need. Like the industry specific will be in top ranks, as they are most suitable to you, then the capital invested if you have something big in your mind, similarly what is the past record in investing with starting firms also plays a vital role.