Launching a start-up can be an incredibly invigorating and fulfilling experience. You finally get to start the business you’ve always dreamed of, nurturing it from idea inception into a full functioning, profitable company. However, it can be hard to accumulate the capital you need to launch a successful start-up on your own. For instance, Kevin Miller, the CEO of the digital marketing agency GR0, speaks to the struggle of finding the financial support you need when first starting out on a new business endeavor on the Kevin Miller podcast section of his website. You can utilize your own savings, but you never want to invest all of your own money into a company. You can try to crowdsource the bulk of your financing, but a great majority of investors can be wary of investing into a new business. That’s where angel investors come in: people who will put money into your business at the start to help you achieve your long term goals. But how do you find an angel investor for your start-up? We’re here with some helpful tips on how to locate the perfect angel investor for your latest business endeavor.
What is an Angel Investor?
An angel investor is an individual with a high level of capital available to invest in other businesses. In exchange for their monetary investment, an angel investor will receive an equity share of the company. In addition to this, angel investors can provide essential entrepreneurial advice that can add value to your business, and help guide you to make the best choices to boost your businesses presence, and help reassure you that you’re making the right financial decisions.
What to Look for in an Angel Investor
When trying to find an angel investor for your business, it’s important to go out to the right people. Don’t try to attach yourself to the first investor you find. Consider the type of business you’re hoping to start, and reach out to individuals who have run similar businesses. Given that they are familiar with the space you want to launch your business in, they’re more likely to invest in what they know. Additionally, you can learn a great deal from an investor who’s worked in the same field as you, not just in terms of investing, but also in how to structure your business. How many employees should you be looking to hire? How do you set up payroll? What kind of insurance is best to acquire for your company? An angel investor with experience in your business’ niche can help you answer all these questions and more, and aid you in each step of your start-up’s growth.
How to Find Your Angel Investor
In order to find the right angel investor for your startup, you’re going to want to do your research. One great place to start your search for an angel investor is by going through your existing business contacts, and see if you know anyone from your previous business endeavors that might have the necessary capital and be willing to invest. If you don’t have people within your inner circle that are likely to invest in your start-up, there are also a number of online angel investor databases, where potential investors have profiles that detail what kind of companies they’re willing to invest in.
Securing Your Angel Investor
Once you’ve found an angel investor willing to consider an investment in your company, you’ll need to prepare a compelling pitch that will convince them to invest their time and money into your start-up. This preparation process includes gathering reports on your current financials, outlining your business goals, and your projections for the future of the company. It’s also important to mention what you’re looking for in terms of mentorship from your angel investor, and how you’d like to foster a working relationship with them. While investors want to know the financial factors of your business, they’ll also want to assess if your approach to work is compatible with theirs.
The Sky’s the Limit
Finding an angel investor to support your start-up can be incredibly beneficial. Not only can they add much needed capital to your business, but they can also help to guide you through important decisions on how to structure and run your company. When looking for an angel investor, you’ll want to find someone who not only believes in your business, but has experience in the same field, so they can offer you specific advice. Once you’ve secured an angel investor to help you fund your start-up, you can also learn how to become an angel investor in the future. For instance, Kevin Miller, who we mentioned above, has gone on to invest in a variety of other companies since starting his own, paying forward the help that his angel investors gave him when he was launching GR0. What factors do you consider when trying to find an angel investor for your start-up?