June 2, 2011
Becoming a member of various communities that are known for matching investors with new business owners will not guarantee that angel investors will be knocking down the door to get to your new business concept. Quite frankly, the probability of locating angel investors by using this strategy will not get you anywhere. Why doesn’t this work? This is due to the fact that a majority of angel investors would rather put their money in businesses that are closer to them because they are more familiar with the markets that are in their local areas, and not the ones in far off places. However, if you are required to complete an online form for an angel investment firm, you should do this rather quickly. So, you may still be wondering, “How do I locate angel investors then?
The following suggestions will help you locate the best angel investors for your business concepts:
Think about the saying that goes, “it is not what you know, but who you know. The first part of this old saying is not really true when it comes to angel investment. This is because angel investors want you to be knowledgeable and proficient in the business that you are about to start. However, the latter part of that old saying is very true. Receiving a referral is probably the most convenient way to be introduced to an angel investor. There is a greater chance that angel investors will pay attention to your business concept if you are referred to them from somebody that they know, trust and have done business with before.
Networking builds upon the referral strategy of locating angel investors. If you presently do not know anybody that can give you a referral to an angel investor, then just attempt to interact with the type of people who think like you do. However, make sure that you do not divulge any of the details of your business concept. As more people learn about your idea, the greater the chance that you will get a referral to the right angel investor.
The United States has over nine million investors, which are mostly executives and business owners who are retired. You can look for retired investors in your area and attempt to sell them on your business concept. Because they are retired executives, they will probably have both the experience and money to help you start your new business. Existing business owners can also be prospective angel investors. A lot of them have the money and would like to diversify their assets via different channels. Looking for business owners is not that hard to do. It can be as inexpensive as just talking to businesses in your area or as expensive as getting an extremely targeted list of businesses within your niche.
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