If you are an emerging business with the next excellent product, sometimes you need 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 folks prepared to invest in entrepreneurial businesses at an early stage - shelled out a lot more than $18 billion into early-stage organizations final year alone, compared to $304 million by venture capitalists. Discovering an angel investor, even so, is not an easy task. Safer Smokes Inc. is a single company that understands the challenge of attracting the appropriate investors. This development-stage firm is tapping the smoking cessation market place with a distinctive tobacco-free, nicotine-free smoke named Bravo, which has the look of a conventional cigarette and burns like tobacco, but is truly 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 businesses like Safer Smokes, it might be too soon to approach big venture capital firms, yet time to move beyond networking with family members and close 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 by means of to the real investment chance," mentioned Torigian. So how do businesses 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 marketplace, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.
Most angel investors prefer firms that are most likely to show positive cash flow within their very first 18 months, so having these kinds of statistics about your industry can be an incentive.
- Match the company program objectives to the angel's risk tolerance. Investors want to know the product or service will be unique and well-cultivated. Safer Smokes has a patented solution that organization officials say will "have an effect on the landscape of the wellness care market." company formation