If you are an emerging organization with the subsequent wonderful product, at times 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 individuals willing to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage businesses final year alone, compared to $304 million by venture capitalists. Locating an angel investor, nevertheless, is not an straightforward 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 exclusive tobacco-totally free, nicotine-cost-free smoke known as Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is in fact made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit steadily," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it could be too soon to approach significant venture capital firms, yet time to move beyond networking with loved ones and friends. 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 real investment opportunity," mentioned Torigian. So how do firms like Safer Smokes attract their angel?
- Have a clear-cut target market for your item or service. For instance, Safer Smokes is targeting the smoking cessation market, which has sales approaching $ten billion per year, up from $6 billion just three years ago.
Most angel investors prefer companies that are likely to show positive cash flow within their very first 18 months, so getting these kinds of statistics about your marketplace can be an incentive.
- Match the organization strategy objectives to the angel's danger tolerance. Investors want to know the product or service will be exclusive and nicely-cultivated. Safer Smokes has a patented solution that company officials say will "impact the landscape of the health care sector." idea angels