If you're an emerging business with the subsequent great product, at times you need to have an angel on your side. A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth individuals willing to invest in entrepreneurial businesses at an early stage - shelled out much more than $18 billion into early-stage businesses last year alone, compared to $304 million by venture capitalists. Locating an angel investor, however, is not an straightforward activity. Safer Smokes Inc. is one particular firm that understands the challenge of attracting the appropriate investors. This development-stage business is tapping the smoking cessation industry with a exclusive tobacco-free, nicotine-cost-free smoke known as Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is in fact made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For firms like Safer Smokes, it could be too soon to strategy huge venture capital firms, however time to move beyond networking with family members and buddies. Angel investors to the rescue. "The challenge for raising capital in today's marketplace is in harnessing the courage and vision of the angel to see through to the genuine investment opportunity," stated Torigian. So how do organizations like Safer Smokes attract their angel?
- Have a clear-cut target market place for your product or service. For instance, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $10 billion per year, up from $6 billion just 3 years ago.
Most angel investors prefer organizations that are likely to show positive cash flow within their very first 18 months, so getting these sorts of statistics about your market place can be an incentive.
- Match the organization strategy objectives to the angel's risk tolerance. Investors want to know the product or service will be special and nicely-cultivated. Safer Smokes has a patented resolution that organization officials say will "have an effect on the landscape of the health care sector." idea angels