If you are an emerging organization with the subsequent fantastic product, occasionally you need 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 men and women willing to invest in entrepreneurial organizations at an early stage - shelled out a lot more than $18 billion into early-stage firms final year alone, compared to $304 million by venture capitalists. Discovering an angel investor, nevertheless, is not an straightforward activity. Safer Smokes Inc. is 1 company that understands the challenge of attracting the correct investors. This improvement-stage organization is tapping the smoking cessation marketplace with a exclusive tobacco-free of charge, nicotine-totally free smoke called Bravo, which has the appearance of a classic cigarette and burns like tobacco, but is really produced from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit steadily," mentioned Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it might be too soon to method huge venture capital firms, yet time to move beyond networking with household and friends. Angel investors to the rescue. "The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see by means of to the actual investment opportunity," stated Torigian. So how do businesses like Safer Smokes attract their angel?
- Have a clear-cut target marketplace for your product or service. For example, Safer Smokes is targeting the smoking cessation industry, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.
Most angel investors prefer organizations that are likely to show positive cash flow inside their initial 18 months, so getting these kinds of statistics about your industry can be an incentive.
- Match the organization plan objectives to the angel's danger tolerance. Investors want to know the product or service will be special and nicely-cultivated. Safer Smokes has a patented solution that company officials say will "affect the landscape of the health care business." company formation