If you are an emerging firm with the next fantastic item, often you need to have an angel on your side. A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth folks willing to invest in entrepreneurial companies at an early stage - shelled out much more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, nevertheless, is not an easy activity. Safer Smokes Inc. is one company that understands the challenge of attracting the appropriate investors. This improvement-stage company is tapping the smoking cessation marketplace with a distinctive tobacco-totally free, nicotine-cost-free smoke referred to as Bravo, which has the appearance of a conventional cigarette and burns like tobacco, but is truly created 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 organizations like Safer Smokes, it could be also soon to method significant venture capital firms, but time to move beyond networking with loved ones 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 way of to the true investment chance," said Torigian. So how do companies 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 $10 billion per year, up from $6 billion just three years ago.
Most angel investors prefer organizations that are most likely to show positive money flow within their 1st 18 months, so having these kinds of statistics about your market place can be an incentive.
- Match the enterprise strategy objectives to the angel's risk tolerance. Investors want to know the product or service will be special and nicely-cultivated. Safer Smokes has a patented answer that organization officials say will "influence the landscape of the health care market." ideangels