If you are an emerging business with the next wonderful product, often you require 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 men and women willing to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage businesses last year alone, compared to $304 million by venture capitalists. Locating an angel investor, even so, is not an simple job. Safer Smokes Inc. is one firm that understands the challenge of attracting the proper 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 look 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 gradually," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For businesses like Safer Smokes, it may be too soon to strategy big venture capital firms, but time to move beyond networking with family and pals. Angel investors to the rescue. "The challenge for raising capital in today's marketplace 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 companies like Safer Smokes attract their angel?
- Have a clear-cut target marketplace for your product or service. For instance, Safer Smokes is targeting the smoking cessation market place, which has sales approaching $10 billion per year, up from $6 billion just 3 years ago.
Most angel investors prefer businesses that are most likely to show positive cash flow inside their 1st 18 months, so getting these kinds of statistics about your market can be an incentive.
- Match the business 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 answer that organization officials say will "influence the landscape of the health care market." ideangels