Angels, as a rule, are much more willing to take a flier on a risky, unproven idea than professional investors and lenders and often take a personal interest in a project. Preferably, your perfect angel investor understands your industry and business model and can bring real value to the table. If they have first-hand experience in your space, and they think they can help you accelerate your efforts, it is also easier for them to get over the investment hurdle. So, how to find angel investors?
Today, there are groups formed by angels and other organizations, such as Funding Post, that arrange for special angel and venture capitalist showcases. You can sign up and pay to attend an event at which you get to meet with many angel investors and VCs. Make sure to have the short elevator pitch ready.
The ACE-Net is an electronic network of angel investors developed by the SBA. It helps angel investors and small businesses seeking capital meet online. There’s an annual fee to enroll in ACE-Net, which varies by state.
The Angel Capital Association is another place to seek out an angel network. ACA provides a great list of angel investors sorted by region of the country, at the Angel Capital Association website. The ACA membership includes more than 150 angel groups and 20 affiliate members from 49 US states and 6 Canadian provinces. These groups represent more than 6,500 angels and are funding approximately 800 new companies each year and managing an ongoing portfolio of more than 5,000 companies throughout North America.
Gust is a reliable source of information on angel investor groups across the world, and the software is used by most of the other angel organizations mentioned for deal flow. There are over 595 member-managed groups and VCs, 30,203 investors, and 2,900 new company applications a month.
Keiretsu Forum -an angel investor network with 850 accredited investor members throughout twenty one chapters on three continents. Its members have invested over $200M in 260 companies in technology, consumer products, healthcare/life sciences, and real estate.
One of the nicest things about the angel networks is that they can pool their resources, have a professional team that sources deals for the network, enabling you to raise from a group of 100 angels aggregating $100MM instead of one angel investor with $1MM.