Find an angel investor

2. Create your executive summary or one-page pitch

Although VC firms get all the attention, it's angel investors who really form the bedrock of funding for fledgling startups. Angels, in fact, can be a godsend for cash-starved companies that aren't ready —and may never be ready — for venture capital. Plus, they offer invaluable expertise and connections to entrepreneurs who desperately need them. Find angel investors U.S. Securities and Exchange Commission. "What are the differences in friends and family, angel investors, and venture capital funds?"

Find angel investors near me

If you’re looking for external funding to take your business to the next level, you’ll run into the concept of an angel investor early on. They’re wealthy individuals, often former entrepreneurs or industry specialists, who invest their own money into businesses in return for equity (a percentage of ownership of the business). They become relevant pretty much as soon as you start raising money in what are commonly known as pre-seed and seed funding rounds. It’s angels who are willing to water the ‘seed’ of your business, with the hope or belief that it’ll grow into something beautiful. And, of course, make them a bit of money if or when you sell the business further down the line. Have the Know-How to Source a Deal Top 5 unicorns that received investments through AngelList.

More articles about angel investors

One approach to consider is to reach out to people who have recently sold successful startups within your industry. Spend some time to get to know them, and invite them to serve as an advisor or on your board of directions. Once you have an established relationship with them and they know more about your company, they might be interested in investing—or you can ask them for introductions to angel investors who might be interested in your company. Was this helpful? Share it! Founders need to carefully assess what they are willing to give up and what an angel investor has to offer in exchange—interested in learning more about angel investing vs venture capital? Read our blog, Angel investing vs venture capital.

Get angel investors

Before approaching an angel investor, you should be prepared with a business plan and investment summary. The investment summary has answers to all of the questions an angel investor should have in a concise form. A business plan is longer which explains the full picture of how the business is going to operate, how money is going to be made and how they will get the return on investment. Angel investor events If you decide to approach an angel investor group, remember that they get a lot of pitches. Getting lost in the pile is very easy. So even if a group has an official application process, you should still try to get a warm introduction.