| Nowadays, it is so difficult to secure funding from a | | | | have enough to take you through 2 to 3 years of |
| venture capitalist during the early stages of a | | | | operation. This means you'll have made some decent |
| venture. The early stages I am referring to are the | | | | sales, set up a management team, employees, and |
| seed or concept up to the startup stage. The | | | | probably even breached the break-even point. |
| concept stage is when research and idea formation | | | | With these conditions, you'd be ready for what most |
| still makes up the bulk of your activities while the | | | | early stage capital provider would consider as an ideal |
| startup stage is when testing is done and the | | | | environment for releasing funds. But the question is, |
| prototype is nearing production. | | | | how do you get to that point? |
| It was not like this in the distant past. Before the | | | | How about those 10 angels mentioned above? How |
| stock market crash of 1987, it was relatively easy to | | | | difficult is it to find those? Well, if you look for each |
| find early stage venture capital. But because of the | | | | one individually, then it would take a lot of time. |
| crash plus the influx of Japanese and Korean venture | | | | However, if you look for a group of angels instead, it |
| capitalists, investment in early stage venture capital | | | | can simplify your task. A group of angels is usually |
| began to lose its allure. | | | | called an angel investor network. Angels group |
| During these stages, you can mostly hope to secure | | | | themselves in order to lessen their individual risks |
| funding only from angel investors. Unfortunately, the | | | | when doing an early stage venture capital. |
| money that a single angel investor can come up with | | | | Networks range from 10-150 members. Some of |
| might not be enough. In fact, a single venture | | | | these networks can even raise up to $5 million and |
| capitalist can easily match the amount that 10 angels | | | | can cater to business locations that are geographically |
| can provide. | | | | far from them. $1 to $5 million of early stage capital |
| By now, an idea might be forming in your mind: Why | | | | can already take your venture a long way. If you're |
| not look for 10 or 15 angels instead? Surely, their | | | | really interested, you can try and look up angel |
| combined money can be enough to fund research | | | | investor network directories online. |
| and other initial costs. Some investors might even | | | | |