Just completing online forms will not magically make angel investors swarm over your business idea. In actuality, the chances of finding angel investors this way is slim to nil. Why won’t searching this way work? Most angel investors prefer to invest in close geographical vicinity as most often investors have a greater idea of the markets they reside as opposed to a city far away. However, if angel investment groups ask you to fill out an online application, then it becomes mandatory to do so. You may be asking, “So, how do I go about finding angel investors?”
The following are some of the few ways you can try to find angel investors:
Remember the saying, “it’s not what you know, but who you know”. The first part of that statement is mostly untrue in this case as angel investors will want you to be intelligent and efficient in the business you are about to start, but the latter part is definitely true. Being referred is quite possibly the easiest way to meet an angel investor. Angel investors are much more likely to listen to you if you have a referral from someone they know, trust, and have done business with in the past.
Networking expands upon the referral method of finding angel investors. If you currently don’t know anyone that can refer you to angel investors, simply try to meet more of the right people and share your ideas with them (being careful not to give away any important trade or technological secrets). As the number of people that know about your idea snowballs, chances grow that you will be referred to the proper angel investor for your business.
There are over 9 million investors in the United States, comprised mostly of retired executives and business owners. You can search for retired executives that are local and try to pitch your ideas to them. As retired executives, they will have both the funds and the expertise to get your business off the ground. Business Owners are also good prospects for procuring angel investment. Many have capital and would like to diversify their holdings through various ventures. Searching for business owners can be as simple and cheap as calling local businesses or as expensive as paying for highly focused and narrowed down lists of businesses.
How To Raise Funding from Angel Investors
If you want to raise your first $100,000 (or more), click below to learn my
battle-tested, 6-step funding formula for raising funding from angel investors