Angel Funding for Entrepreneurs
Resources for Entreprenuers
The environment for today's entrepreneurs looking to raise funding from Angel investors is still very good and companies that have a solid business plan, interesting technology, traction in the market and a team that can grow a business are still finding investors willing to invest there money in their venture. There has been a significant rise in the early stage seed round incubators due to the success of Y Combinator and other similar type organizations that invest around 15-20k per company for 5-10% in equity of the start ups. This has given many new ventures a leg up that they otherwise might have had to either do on there own or not get the project off the ground at all. Companies that are not able to go through one of these prominent start up boot camps can still be successful though finding active investors and presenting their company to them. In order to maximize your activities of running your business and pursuing angel investors to continue to fund the business and expand into new areas that are part of the companies vision the following websites can be extremely helpful. These sites were picked due to being strong representatives for specific types of sites. There are countless websites and self help books about starting a new business for the first time and raising money whether from friends and family or venture capitalists. However, if you leverage these 3 resources and engage with the communities that exist on the web you will be able to gain access to the angel investors and get them to make a decision about your pitch.
The Funded - Advice on Investors and Process
The Funded a website with the overall intention of providing a platform for entrepreneurs that have raised funds before and those that are currently actively raising money from angels and venture capitalists to discuss there experiences with different firms and specific partners. When the site launched several years ago initially it was hated by many in the investor community because it exposed several parts of the industry that were not favorable towards start ups and there founders. In time the website has become a go to source for information regarding investors, the practice of early stage investment, and a place entrepreneurs can air their grievances as well as leverage the wisdom of the community which contains people from many successful start ups. If you need to identify firms that may be active and interested in the space that your company is pursuing then review The Funded for ideas about which firms and partners to reach out to. Also before going to a meeting check up on any people you will be meeting so you know more about there professional and investment background.
AngelList - A Community of Start Ups
AngelList is an awesome place to promote your business as a company that is open to working with angels and early stage venture capitalist investors. Create a company profile with all of the basic details about your company and solution. In order to get the most out of your listing on AngelList it is best to wait a little bit before setting up your profile and use an early success in raising money from an Angel to catapult you into the eyes of others through a professional endorsement from one investor to people in their networks. Angel investors often make investments with others and so if you are able to get one active investor to believe in your company and place there money on the table then they are likely to also pull in people that they know and keep the round moving forward. This kind of investment snowball can happen quickly through a profile on AngelList. Other companies have of course experienced complete avoidance on their profiles in sites like this. It is best to use these tools as a means to keep buzz going and gain attraction of others investors as soon as a few are already on board and the ship is sailing away, that is when many others will want to jump on board and give you money as well.
Role of Early Stage Investors
Angels Versus Venture Capitalists
Inc. - Magazine for Entrepreneurs - Excellent Resources
The magazine Inc. that covers start ups, entrepreneurs and other issues related to business and innovation is a slightly different style of site compared to the others being that is focused more on being a journalist site reporting and writing interesting articles related to business. The great thing is that at the same time they also produce free to view and use resources such as the Angel Investor Directory that is located just in one of there web pages.
Using the Angel Investor Directory you can find investors that focus on any of these specific regions within the United States:
- National Networks - Cross Country
- Pacific Northwest
- North Central
Raise an Angel Round for your Start Up
Running a start up is no easy task so take advantage of these three websites to find the details that you will need to know to begin the process of reaching out to Angel investors. Find some angels that are interested in business similar to what you are doing and that focus on investing in your region and send an email or make a phone call to discuss there process for reviewing new investment opportunities.
In order to have a success meeting with an Angel investor there is several things that should be done when preparing the materials and presentation, however those details will be left for another day. Have fun looking through The Funded, AngelList, and Inc. and learn all about angel investments and the requirements of companies seeking to raise a round.
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