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If you're an emerging organization with the subsequent wonderful item, occasionally you need to have an angel on your side. A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth people willing to invest in entrepreneurial firms at an early stage - shelled out more than $18 billion into early-stage companies final year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, nevertheless, is not an effortless activity. Safer Smokes Inc. is 1 organization that understands the challenge of attracting the right investors. This development-stage company is tapping the smoking cessation industry with a special tobacco-free, nicotine-free of charge smoke known as Bravo, which has the look of a standard cigarette and burns like tobacco, but is really produced from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For firms like Safer Smokes, it may possibly be also soon to strategy big venture capital firms, but time to move beyond networking with family and close 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 real investment opportunity," said Torigian. So how do firms 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 $10 billion per year, up from $6 billion just 3 years ago.
Most angel investors prefer businesses that are most likely to show positive money flow within their very first 18 months, so getting these sorts of statistics about your industry can be an incentive.
- Match the organization plan objectives to the angel's risk tolerance. Investors want to know the product or service will be special and well-cultivated. Safer Smokes has a patented resolution that firm officials say will "affect the landscape of the well being care industry." company formation
