In this day and age when economic uncertainty is on the rise, a guide on how to find angel investors for startups can work wonders. Entrepreneurs looking for a financial injection turn to angel investors for support, and looking at the right place counts.
Angel Investors for Startups
Angel investors can be highly beneficial in times of dire need and a guide on how to find angel investors for startups can be the go-to document. Times of uncertainty and ongoing economic crisis around the globe can only add fuel to the fire.
But people looking to enter the fundraising domain need to know the terminologies and the processes required for such high net-worths. Also, understanding the terms and conditions behind the deal is of vital importance for a technical visionary.
Since the investment can range in more than multiple figures and can also claim a chunk of the pie, due diligence is necessary. After deciding to undergo angel funding, the next question becomes where to find such angels.
What is an Angel Investor?
In exchange for equity in an aspiring entrepreneurial venture or startup, investors look to invest their savings so that such startups can boost their growth and scale their product. Such investors are called angel investors.
Providing capital for such startups does provide a piece of the cake, but it does not provide angel investors operational rights in the company or any operational voting rights.
Such investors can range from any background: venture capitalists, wealthy themselves or members of any related networks. It is up to the startup where he finds such investors, but it is not uncommon if the investor is sole or in a partnership with another angel investor.
Such investors may have relevant business experience or they can provide expert consultation to the startup. In any way, they can be a major helping hand to the venture looking to go big.
How to Find Angel Investors for Startups
We have compiled together a list for startups looking to find angel investments. These are excellent places to look for such financial aid, and may provide excellent help in their respective domains.
1. AngelList
A dedicated website for technological ‘geeks’, AngelList is popular when it comes to raising funds, recruiting related teams and providing a launching pad. With its boasted reach in the technological industry, it aims to serve such startups with reliable resources.
Upon joining AngelList, people can easily join the website and look for their interests. Content available on the website focuses on angel investments, agile processes and other related processes.
Users interested will need to go to the website and build their personal profile along with a company profile, if needed. A good profile always provides a benefit amongst others for people looking for exposure and required coverage.
AngelList also maintains a social presence with regular account activity and updates. Twitter account out of which has more than 393,000 followers.
2. Tech Coast Angels
Another popular angel investment entity with a wide American coverage is Tech Coast Angels. The website boasts more than 400 investors and provides startups looking for mentoring a credible platform with added connections and handling.
Various sectors under coverage include software, information technology, life sciences etc.
The website also includes blog resources which provides entrepreneurs with a lot of readable resources. Blog articles include what angel investors may be looking for in startups etc.
Tech Coast Angels also maintains a healthy social media presence such as Facebook and Twitter. Regular updates and content updates can be found where Tech Coast provides material which could help young startups.
3. Angel Investment Network
Currently a group boasting one of the largest communities of angel investors in the world, Angel Investment Network has more than 300,000 members. These huge membership numbers provide startups with a lot of room to select their funding from.
Angel Investment Network prioritizes technology and real estate among other industries. With startups wanting to have a range of choices to select from and doing their homework, they can find Angel Investment Network a good choice.
They are also on Facebook and Twitter where their following is modest, more than 20,000. The website also maintains a blog which has good information.
4. Gust
Gust has highly qualified angel investors which provide credential and verified resources to startups. With a reliable investment network boasting of thousands of various industry startups, Gust is where you can go for any resource.
Conducting due diligence is still required, and Gust also provides the option for aspiring entrepreneurs to work with them for a suitable path and course of action for probable fuel injection.
Boasting trust as their core product, Gust provides entrepreneurs with a straight path to what they term as ‘fundraising success’.
5. Hyde Park Angels
To focus on startups, find their growth and realize their potential, Hyde Park Angels can provide a suitable platform for them to raise fundings. Like the majority, main industries which they tend to focus on are information technology, financial services and healthcare.
They also provide an informative blog which posts multiple entries per month focusing around various tips for such startups.
They also maintain their presence in social media and for investors looking for a good place where they can find investments along with tips, Hyde Park Angels is one of those places.
Deciding Upon Your Financial Investment and Going Forward
Every startup should conduct thorough research whether they can rhyme with the dynamics of fundraising rounds and venture capitalists. Angel investors can have no operational rights, but they do share equity in the vision.
Fundraising isn’t for every startup. It depends upon the company’s goals whether they find such a prospect appealing. If the company feels they need to scale their product for fueling their growth, an angel investor may be exactly the one the company would be looking for.
Companies should take a look at the websites mentioned above and decide upon the correct path. This stressful process of raising capital and for people having no experience can be daunting, but it also reaps different rewards.