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If you're an emerging firm with the next fantastic product, often you require 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 people prepared to invest in entrepreneurial companies at an early stage - shelled out a lot more than $18 billion into early-stage firms final year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, nevertheless, is not an straightforward task. Safer Smokes Inc. is one particular business that understands the challenge of attracting the proper investors. This improvement-stage company is tapping the smoking cessation market place with a special tobacco-free, nicotine-totally free smoke named Bravo, which has the appearance of a standard cigarette and burns like tobacco, but is in fact created from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit steadily," said Puzant C. Torigian, chief executive officer of Safer Smokes. For businesses like Safer Smokes, it may be also soon to approach huge venture capital firms, but time to move beyond networking with family members and friends. Angel investors to the rescue. "The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see by way of to the actual investment opportunity," said Torigian. So how do companies like Safer Smokes attract their angel?
- Have a clear-cut target market place for your product or service. For example, Safer Smokes is targeting the smoking cessation market place, which has sales approaching $ten billion per year, up from $6 billion just three years ago.
Most angel investors prefer firms that are most likely to show positive cash flow inside their 1st 18 months, so having these sorts of statistics about your market place can be an incentive.
- Match the organization strategy objectives to the angel's risk tolerance. Investors want to know the product or service will be distinctive and nicely-cultivated. Safer Smokes has a patented resolution that business officials say will "impact the landscape of the well being care business." ideangels
