If you're an emerging organization with the next excellent item, occasionally 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 businesses last year alone, compared to $304 million by venture capitalists. Discovering an angel investor, even so, is not an straightforward process. Safer Smokes Inc. is a single firm that understands the challenge of attracting the proper investors. This improvement-stage business is tapping the smoking cessation industry with a unique tobacco-totally free, nicotine-totally free smoke referred to as Bravo, which has the appearance 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 organizations like Safer Smokes, it may be also soon to strategy huge venture capital firms, yet time to move beyond networking with family members 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 via to the true investment chance," said Torigian. So how do organizations like Safer Smokes attract their angel?
- Have a clear-cut target market place 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 three years ago.
Most angel investors favor firms that are likely to show positive money flow within their first 18 months, so having these kinds 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 item or service will be special and nicely-cultivated. Safer Smokes has a patented answer that firm officials say will "influence the landscape of the health care business." company formation