GrissomEdmonson752
If you're an emerging firm with the next great product, sometimes you need an angel on your side. A study by the University of New Hampshire's Center for Venture Analysis showed that "angel investors" - high-net-worth folks willing to invest in entrepreneurial companies at an early stage - shelled out much more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists. Discovering an angel investor, nevertheless, is not an straightforward task. Safer Smokes Inc. is one particular organization that understands the challenge of attracting the correct investors. This improvement-stage firm is tapping the smoking cessation market with a unique tobacco-cost-free, nicotine-totally free smoke called Bravo, which has the look of a classic cigarette and burns like tobacco, but is truly 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 organizations like Safer Smokes, it may possibly be also soon to approach big venture capital firms, yet time to move beyond networking with loved ones and close friends. Angel investors to the rescue. "The challenge for raising capital in today's marketplace is in harnessing the courage and vision of the angel to see by means of to the genuine investment chance," mentioned Torigian. So how do companies like Safer Smokes attract their angel?
- Have a clear-cut target industry for your item or service. For example, Safer Smokes is targeting the smoking cessation market, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.
Most angel investors favor businesses that are likely to show positive cash flow inside their 1st 18 months, so getting these types of statistics about your market can be an incentive.
- Match the business strategy objectives to the angel's danger tolerance. Investors want to know the product or service will be exclusive and well-cultivated. Safer Smokes has a patented answer that organization officials say will "have an effect on the landscape of the well being care sector." setting up a business
