If you're an emerging firm with the next fantastic item, at times you want 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 companies final year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, even so, is not an effortless job. Safer Smokes Inc. is one firm that understands the challenge of attracting the correct investors. This improvement-stage company is tapping the smoking cessation marketplace with a special tobacco-free, nicotine-totally free smoke known as Bravo, which has the look of a classic cigarette and burns like tobacco, but is actually made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit steadily," said Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it may possibly be too soon to approach huge venture capital firms, yet time to move beyond networking with household and buddies. 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 through to the true investment opportunity," mentioned Torigian. So how do organizations like Safer Smokes attract their angel?
- Have a clear-cut target marketplace for your item or service. For example, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $10 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 very first 18 months, so having these kinds of statistics about your market can be an incentive.
- Match the enterprise plan objectives to the angel's danger tolerance. Investors want to know the item or service will be exclusive and nicely-cultivated. Safer Smokes has a patented solution that firm officials say will "have an effect on the landscape of the wellness care industry." idea angels com