| Angel investors provide financing that bridges the gap | | | | network for whom you will be making a pitch, get |
| between self-funding and getting capital from a | | | | down to research. Find out what is likely to interest |
| financial institution. Generally, angel investors fund | | | | the potential investor, how the network of angels |
| start-ups with the hope of earning big rewards. | | | | runs, the kind of investments they have already |
| In order to approach an angel investor, browse | | | | made etc. |
| through online lists that you can found on the | | | | The next step is to get to know your angel investor. |
| websites of the Angel Capital Association, Center for | | | | If you are able to build up a rapport, the angel will |
| Venture Research, the Angel Capital Education | | | | receive your business plan better or may refer you |
| Foundation etc. While going through the listings, drill | | | | to their network. |
| down to the regions where these investors are | | | | The best way to interest an angel investor is to |
| located. Usually, angels like to fund businesses that | | | | show them the kind of returns they are likely to get. |
| are geographically close to them. This is so that they | | | | Generally, angels look at making four times the |
| can set up meetings conveniently and keep an eye | | | | amount they have invested, within the next three |
| on their investment. | | | | years. This is why you need to talk to an angel about |
| Many angels regard themselves as employees who | | | | rewards not just the risks. This is common newbie |
| fund a start-up. They usually fund the company and | | | | error you should avoid. |
| then help the entrepreneurs to position themselves in | | | | When you approach an angel investor, the key is to |
| the market so that they are ready for their first | | | | be upfront and realistic. Avoid making the mistake of |
| round of financing from institutions. | | | | overvaluing your company even though you may |
| While looking out for an angel investor, do some | | | | think your product is the next big thing. Keep in mind |
| research on the previous ventures that the angel | | | | that angels typically have been in your position |
| may have funded. Some specialize in investing in | | | | several times over and bought and sold many a |
| specific sectors while there are others who invest in | | | | business, so they always know when you are |
| nay kind of venture as long as it looks promising. | | | | inflating rewards or the value of your business. |
| After you have short listed the angel individuals or | | | | |