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If you're an emerging firm with the next excellent item, often you need to have an angel on your side. A study by the University of New Hampshire's Center for Venture Study showed that "angel investors" - high-net-worth individuals prepared to invest in entrepreneurial organizations at an early stage - shelled out more than $18 billion into early-stage firms last year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, even so, is not an straightforward task. Safer Smokes Inc. is one particular business that understands the challenge of attracting the correct investors. This development-stage company is tapping the smoking cessation marketplace with a special tobacco-free, nicotine-totally free smoke named Bravo, which has the appearance of a conventional cigarette and burns like tobacco, but is in fact made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," said Puzant C. Torigian, chief executive officer of Safer Smokes. For businesses like Safer Smokes, it may possibly be too soon to strategy big venture capital firms, however time to move beyond networking with household and friends. Angel investors to the rescue. "The challenge for raising capital in today's market place is in harnessing the courage and vision of the angel to see by means of to the true investment chance," said Torigian. So how do businesses like Safer Smokes attract their angel?
- Have a clear-cut target market for your product or service. For instance, Safer Smokes is targeting the smoking cessation market, which has sales approaching $10 billion per year, up from $6 billion just three years ago.
Most angel investors prefer companies that are most likely to show positive money flow inside their initial 18 months, so having these kinds of statistics about your market can be an incentive.
- Match the enterprise plan objectives to the angel's danger tolerance. Investors want to know the product or service will be distinctive and well-cultivated. Safer Smokes has a patented resolution that firm officials say will "have an effect on the landscape of the wellness care sector." idea angels
