Angel Investors

Introduction

Angel investors are those investors that offer the funds to any start up venture or for business expansion. These investors do it against the ownership equity or convertible debt. These angel investors are increasing in number and hence they are also forming groups and networks known as angel investor groups. Companies looking for expansion of a business or even the beginners can approach these groups to put across their proposals and avail the funds. The angel investors fund their own money and don’t collect it from different ventures. These angel investors also require the entrepreneurs that possess the fire to grow and will get the good returns for their investment.

Characteristics Of Angel Investors

The Angel investors are the investors having enough money to invest but they are always looking for the best investment proposal. Usually, these angel investors are found to be rejecting almost 75% of the proposals they receive just due to the fear of unseen. The only way to convince these angel investors would be through a properly drafted proposal. If you have decided to find angel investors for your profile then you need to first check the people around you. They would like to invest in the nearby project as they like to visit their ventures periodically. They usually fall in the age group from 40 to 60 years. They would like to invest in the projects falling under the field that they understand well. They like to invest in the ventures that they can understand well and also can share their experiences. Hence, find the angel investors around you that have knowledge of your field. The angel investors may have the good income and considerable net worth then only they would get ready to invest. You may look for the angel investors that are ready to hold their investment for 5 to 7 years.

Where To Find?

You can find these angel investors from the social community as well as business community. You need to have proper networking so as to develop contacts with the potential angel investors. If you will have a developed network in the social and business community then some business owner will himself get ready to invest in your project. Many times these business owners know the angel investors and may recommend you to them. The angel investors will get ready to invest in your project soon if you are recommended by some influential business owner. To be a part of these business networks, you need to join some trade organizations, business organizations, community organizations and other such civic organizations. You can attend the meetings held by these organizations regularly or you can even attend the trade fairs and investor’s summits to meet the angel investors face to face. You may meet as many people as possible during such summit so as to know more and more angel investors. You can find these angel investors groups too available online too so as to know more about these angel investors. You can put up your proposals on these websites so as to attract more angel investors.

How To Attract The Angel Investors?

If you have found the angel investors then the main thing is to impress them. The angel investors would like to invest in only those businesses where they will find better returns. They would invest only if they find the avenues of returns more than that of the stock market. They would like to encourage the new ideas as they themselves would be having good entrepreneurial skills. The investors may look for the opportunities of returns but at the same time get attracted to those offers that will utilize their experience too. The angels would love to fund the proposals with solid business plans. Hence, you need to prepare the thorough business plan before submitting the proposal. You may also mention about you management team so as to attract the investors. The opportunity for active participation for the angel investors may also be mentioned in the proposal so as to offer them the opportunity to utilize their knowledge and experience. The exit strategy may also be formed for the angel investors from the very beginning so as to offer them the free will to exit from the project. This way the investor will not hesitate to invest in your project because of the apprehensions.

How To Submit A Proposal?

Once, you have done the complete research work for your project, all you need to do is form the proper proposal to submit it to the angel investors. When you start writing the proposal, you need to first know that why you are writing this proposal and to whom you are writing the proposal. Also collect the complete data about the angel investors before sending them the proposal. The SWOT analysis of yourself as well as you organization is also important. You may collect the track record of your skills in financial management, technical skills, general management and project management too. You need to have the complete data of your project like the project design, process and return on investment plan ready. Once you have all this data ready, then only start writing your proposal to be submitted to the angel investors. The angel investors would make their decision based on this proposal and hence they would not entertain the proposals written in haste. You may mention your identity in detail with your education and previous track record. You may mention the project details with the budget and the return structure. The body of the proposal may contain the details of the project and you may mention the conclusions too. The Appendices and the Bibliography or references may form the part of this business proposal. The angel investors will judge you from your proposal and hence give enough time to the preparation of this proposal.

Review

The angel investors can be found from your own social group or even your business network. All you need to do is to know more people and let the more people know about your business plan so as they may recommend you to their friends and business associates to lend you funds. The proposal makes the important part of such investment deals and hence submit your proposal once you are thoroughly convinced with it.

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