If you're an emerging organization with the next excellent item, at times you require an angel on your side. A study by the University of New Hampshire's Center for Venture Investigation showed that "angel investors" - high-net-worth folks prepared to invest in entrepreneurial companies at an early stage - shelled out more than $18 billion into early-stage firms last year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, even so, is not an easy task. Safer Smokes Inc. is one particular business that understands the challenge of attracting the right investors. This improvement-stage firm is tapping the smoking cessation marketplace with a unique tobacco-free, nicotine-cost-free smoke known as Bravo, which has the appearance of a classic cigarette and burns like tobacco, but is in fact created from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit gradually," mentioned Puzant C. Torigian, chief executive officer of Safer Smokes. For businesses like Safer Smokes, it may be also soon to approach big venture capital firms, but time to move beyond networking with family members and close friends. Angel investors to the rescue. "The challenge for raising capital in today's market place is in harnessing the courage and vision of the angel to see through to the real investment chance," said Torigian. So how do firms like Safer Smokes attract their angel?
- Have a clear-cut target market for your product or service. For instance, Safer Smokes is targeting the smoking cessation market, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.
Most angel investors favor businesses that are most likely to show positive money flow within their initial 18 months, so getting these types 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 item or service will be exclusive and properly-cultivated. Safer Smokes has a patented remedy that firm officials say will "affect the landscape of the wellness care market." ideangels