If you are an emerging firm with the next wonderful item, sometimes you need an angel on your side. A study by the University of New Hampshire's Center for Venture Analysis showed that "angel investors" - high-net-worth folks willing to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists. Finding an angel investor, nevertheless, is not an effortless task. Safer Smokes Inc. is one particular business that understands the challenge of attracting the right investors. This improvement-stage organization is tapping the smoking cessation marketplace with a exclusive tobacco-free of charge, nicotine-totally free smoke known as Bravo, which has the appearance of a standard cigarette and burns like tobacco, but is actually made 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 could be too soon to method significant venture capital firms, yet time to move beyond networking with household and close 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 by means of to the real investment opportunity," said Torigian. So how do businesses like Safer Smokes attract their angel?
- Have a clear-cut target industry for your item or service. For instance, Safer Smokes is targeting the smoking cessation market place, which has sales approaching $ten billion per year, up from $6 billion just three years ago.
Most angel investors prefer firms that are likely to show positive money flow within their first 18 months, so getting these types of statistics about your marketplace can be an incentive.
- Match the business plan objectives to the angel's danger tolerance. Investors want to know the product or service will be distinctive and well-cultivated. Safer Smokes has a patented remedy that firm officials say will "affect the landscape of the health care sector." idea angels