Angels are usually wealthy individuals, former executives, or entrepreneurs themselves who desire to work with smart startup teams. They rely heavily on their instincts, industry experience, and connections when investing in new businesses. Angel investors usually invest because they believe in your idea and that you are the right person to make it reality, so when talking to potential angels, be prepared to discuss your background, expertise and show passion for the project.
Where to find angels:
- It is smart to reach out to your network and get a warm introduction – people close to you might be excited about investing in your future, and are a good source of recommendations for other potential investors. Keep reading this post
When you are launching a crowdfunding campaign, you have to create a following, attract supporters – and you need to start working on that before the campaign is live. Richard Swart, director of research at the Program for Innovation in Entrepreneurial and Social Finance at the University of California, Berkeley, found that campaigns that successfully raised $100,000 spent at least 200 hours preparing for a crowdfunding effort and an average of 136 hours managing it – all before pledged funds hit the bank. “To reach the funding target, the first 30 percent of funds needs to be committed before the campaign goes live,” Swart says.
Start with writing down who your ideal customer is and who your ideal funder will be. Focus on real data about customer demographics and online behaviour, along with educated guesses about their personal histories, motivations, and potential concerns. Keep reading this post