May 17, 2011
Contrary to popular belief, signing up at an online funding community that puts investors together with entrepreneurs will not magically match you with an angel investor or cause a swarm of investors to flock to you. As a matter of fact, if you are looking to work with an angel investor, these communities are the last place you are going to find them. The majority of angel investors tend to invest close to where they live because they tend to know the market better than they do a city that is far away. However, if you are asked by an investment group to fill out an online application you has to do it. Undoubtedly you are asking yourself, â€œHow can I find angel investors?â€
Here are a few ways and places that you can find angel investors:
There is an old saying that states, â€œIt isn’t what you know, but who you know.â€ Keeping in mind that what you know is important, when it comes to angel investors you want to make it clear that you are intelligent and efficient and capable of operating your business, but the second part is very true. As a matter of fact, a referral is the absolute best way to get in contact with an angel investor. Angel investors are more likely to listen to what you have to say if you are referred to them by someone they know, trust and have done business with before.
Again, it is who you know and networking takes the referral method to the next level when it comes to angel investors. You may not know anyone right now that can refer you to an angel investor, that should only motivate you to try and find the right person to share your ideas with (it is important that you don’t give too much away such as trade secrets or technological secrets.) As the number of people that know about your business snowballs, chances increase of you meeting an angel investor in the process.
In the United States, there are more than 9 million investors; these investors are mostly retired business owners and executives. If you want you can do a search of retired executives in your area so that you can pitch your business idea to them. Current or former business owners are good prospects for finding angel investors. Many have capital and they are looking to diversify holdings by taking part of a variety of ventures. You can do this search rather economically, just pick up the phone and make a few phone calls to local businesses or as expensive as you want by paying for a narrowed down and highly focused list of businesses.
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