If you are an emerging company with the next fantastic product, occasionally you need to have 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 businesses 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, however, is not an straightforward process. Safer Smokes Inc. is 1 organization that understands the challenge of attracting the appropriate investors. This development-stage business is tapping the smoking cessation marketplace with a exclusive tobacco-totally free, nicotine-free smoke known as Bravo, which has the look of a standard cigarette and burns like tobacco, but is truly made 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 firms like Safer Smokes, it could be too soon to approach large venture capital firms, however time to move beyond networking with family and 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 genuine investment chance," stated Torigian. So how do firms like Safer Smokes attract their angel?
- Have a clear-cut target industry for your product or service. For example, Safer Smokes is targeting the smoking cessation marketplace, 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 inside their first 18 months, so having these sorts of statistics about your market place can be an incentive.
- Match the business strategy objectives to the angel's risk tolerance. Investors want to know the product or service will be special and properly-cultivated. Safer Smokes has a patented answer that firm officials say will "have an effect on the landscape of the well being care market." idea angels