How to find angels for your startup
The angel economy is a booming sector for young entrepreneurs.
According to research firm Morningstar, it is expected to grow from $1.4 billion in 2013 to $2.3 billion in 2020.
There are over 1.1 million angel investors worldwide.
While some angel investors are large, they don’t always have the most lucrative business models, which means a new startup can be hard to get started in.
“It’s hard to find a VC who is really interested in your business, and the only way to get in is to have a lot of people saying, ‘Let’s do this,'” says Adam Dangour, a senior investor at CapitalGains, an investment bank that advises angel investors on business ventures.
“That’s why you want to find the best person for the job.”
Here are five tips to find investors that fit your unique business.
Start Your Business First You should have a solid idea of your business and the business you want it to be.
“If you can’t explain it clearly, then you’re not going to get anywhere,” says Scott Biederman, founder of the startup accelerator CapitalGives.
Start with your ideas first.
This could mean putting together a business plan or a product roadmap.
If you want a product or service, talk to someone who has experience in the space, and make sure you’re comfortable working with them, says Biedeman.
“The way to really make sure that you are really getting your product out there and getting people excited is to start from scratch, without any external help.”
It’s important to remember that there’s a lot more to angel investing than just the business side.
Angel investing requires a commitment to your business.
“You need to be a very committed angel investor, but you also need to have the ability to commit to other things that are equally important,” says Dangor.
“To get your product in front of people, to get your brand noticed, you need to commit your time and energy to your startup.”
If you can, you should also consider getting a partner to help you find investors.
“An angel investor is the person who will actually put money in your startup,” says Bierman.
“They’re going to invest money in it to help it grow.”
The best way to find an angel is to look for them on a website.
“In the past, I think it’s just a little bit more difficult because the website is so huge,” says Andrew McArthur, a partner at Founders Fund, a venture capital firm that invests in startups.
“But I think the time has come for startups to start building the kind of social and business-oriented sites that are really helpful for people.”
Follow this guide to find angel investors for your next startup: