Finding the right angel investor for your business is crucial to the business’s future success. The right angel investor will provide you not only with the capital needed to grow, but provide expertise and a network to aid your business through good and bad times.
Not only should the angel investor have the capital needed to back your business, but there should be a chemistry between the investor and investee. Taking an angel investor on board is essentially creating a partnership. Therefore, that partnership should be full-proof and able to sustain itself throughout times of difficulty.
Online Resources
There are several resources online for both angel investors, and startups looking to be invested in. For example, AngelList is a website for Angel Investors to browse companies to potentially invest in. As a startup, you can post your business on the website and receive high-quality applicants for whatever kind of investor position you are looking to fill. Additionally, sites like CBInsights and Quora are good places to start when searching for an investor.
Mentors
Many startups have some form of mentorship. Not only can that mentor provide you with insights on your business, but usually they have an exceptional network. It is worthwhile to ask your mentor if they know of any angel investors or places where angel investors may be. There is a good chance they will provide you with some value.
Biggest Customer
Sometimes it is worthwhile to ask your business’ biggest fans for leads on investors. The fact that they are fans of your product or service, probably means they would be happy to see you prosper. They might either know of angel investors or even want to invest themselves. Either way, it is worth asking.
Network
The angel investors are least likely to just come to you. Throughout all of these tips, is a theme of networking. Whether it be your mentors, your customers or industry professionals, networking is key to finding your startup’s investor. Going to events and getting in touch with industry leaders, can open up your business to a vast community of angel investors. Research which events will host the most valuable people, and which will be most relevant to your industry, and then go from there.
Regardless of what industry you’re in, your network is most likely your most valuable tool to securing an Angel Investor. It is always important to conduct some secondary research online as to where Angel Investors might congregate, and which ones will be most likely to invest in your business, but ultimately your network will know best. Go forward with these four tools and good luck finding an Angel Investor for your business. (Sidenote: don’t forget to check if you qualify for the SR&ED program while you’re looking. Venbridge’s services allow you to maximize your government tax incentives, better manage cash flow, and invest more in the areas you need – Call us we can help.)
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