If you are an emerging company with the subsequent great product, at times you need 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 individuals prepared to invest in entrepreneurial companies at an early stage - shelled out more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists. Discovering an angel investor, however, is not an effortless job. Safer Smokes Inc. is one particular business that understands the challenge of attracting the appropriate investors. This development-stage firm is tapping the smoking cessation marketplace with a special tobacco-free, nicotine-free smoke called Bravo, which has the look of a classic cigarette and burns like tobacco, but is really created from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," said 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, however time to move beyond networking with family members and close 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 through to the actual investment opportunity," mentioned Torigian. So how do firms 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 industry, which has sales approaching $ten billion per year, up from $6 billion just three years ago.
Most angel investors prefer firms that are likely to show positive money flow inside their 1st 18 months, so having these kinds of statistics about your industry can be an incentive.
- Match the company plan objectives to the angel's risk 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 "affect the landscape of the wellness care industry." ideangels