June 12, 2013
A statistic of the Center for Venture Research in New Hampshire says that 67,030 companies received angel funding in 2012.
The angels invested more than $22,9 billion, which is a 1,8% increase over the prior year and that`s a lot of money. Who gave out this money? More than 250,000 individuals so there are obviously many angel investors out there.
How can you find these angel investors? There is no directory of angel investors, but that is good goods as it is bad news. It is true that it is a bit more difficult to find them, but that also means that they are not constantly bombarded with deals and raising money from them will be rather easy.
What is the best way to find angel investors? The answer is networking.
The first step is to ask around. Ask everybody starting from your friends, family and colleagues to advisors, accountants and lawyers. They might know somebody who has the funds to invest in a new business.
It is important to keep networking and meeting new people. Try to meet and target individual angel investors. Find ways to get yourself introduced and try to be of use to them. If you identified an executive in your business as a perfect candidate get yourself introduced through a common acquaintance or call them directly. Go out there and meet them at venues and events they might attend. Following is a list of the best places to find angel investors. It is a list personally tested by me. Check it out:
1. Business & Networking Events in your area
Business owners and entrepreneurs are usually angel investors themselves so it makes a lot of sense to go to local events that attract this kind of people. Entrepreneurs are likely to know an angel investor and introduce you to one even if they are not angel investors themselves.
Check out websites like Meetup, Eventful or Eventbrite.
To find Angel Investors in your area:
Go right now on Meetup and type entrepreneur in the search field and you will find a list of local related events.
2. Trade Shows & Industry Conferences
Industry Conferences and Trade Shows are visited by people who have the funds and interest to invest in a company like yours. If they are at an industry-related event they will know the industry and can bring more than money and that is advice and knowledge. You will also be able to explain your company much faster and without the need to educate them in depth about the industry.
Industry trade journals are usually filled with these types of events.
3. Alumni Events
Many successful people come to college alumni events. Many of them would be very interested to invest in your company if it seems very promising. You share the same alma mater with them so you have a starting point for the discussion. Try to go to these events more often and to network with the people that come there.
If you have access to an online alumni use it in your favor. This way you can identify the individuals that could be of help and would be able to invest in your company.
4. The meetings of the Chamber of Commerce.
The biggest concentration of business owners will be at the meeting of the local Chamber of Commerce. Find a way to get in these meeting.
5. Charity events or Local Organizations & Charities
I met many business owners and angel investors while I was volunteering at local organizations or organizing charity events. People like to give back to people that are less fortunate and so should you. There is also a bonus in this. Successful people are also big donors and hang out at these types of events or locations. They might be also interested in funding your company.
6. Become a Guest Speaker
You can go as a speaker to groups like YPO ( Young President`s Organization), Vistage or Toastmasters that regularly hold events.
Find the groups that could benefit from your knowledge and hold a great presentation. As a speaker you will meet other business owners and successful people who will probably be interested in investing in something that you started or you own.
There are many ways to meet angel investors and many meetings to go to, so organize your schedule in such a way to include these important meetings.