If you're an emerging company with the subsequent wonderful item, often you want an angel on your side. A study by the University of New Hampshire's Center for Venture Study showed that "angel investors" - high-net-worth individuals prepared to invest in entrepreneurial companies at an early stage - shelled out much more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists. Locating an angel investor, nevertheless, is not an straightforward process. Safer Smokes Inc. is a single company that understands the challenge of attracting the correct investors. This improvement-stage firm is tapping the smoking cessation market place with a distinctive tobacco-cost-free, nicotine-cost-free smoke named Bravo, which has the appearance of a conventional cigarette and burns like tobacco, but is actually made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," said Puzant C. Torigian, chief executive officer of Safer Smokes. For firms like Safer Smokes, it might be too soon to strategy significant venture capital firms, yet time to move beyond networking with family and friends. Angel investors to the rescue. "The challenge for raising capital in today's industry is in harnessing the courage and vision of the angel to see via to the real investment opportunity," stated Torigian. So how do companies like Safer Smokes attract their angel?
- Have a clear-cut target marketplace for your item or service. For example, Safer Smokes is targeting the smoking cessation market, which has sales approaching $10 billion per year, up from $6 billion just three years ago.
Most angel investors favor firms that are likely to show positive cash flow inside their very first 18 months, so getting these types of statistics about your marketplace 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 unique and properly-cultivated. Safer Smokes has a patented solution that business officials say will "have an effect on the landscape of the wellness care business." idea angels com