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If you are an emerging company with the next great product, sometimes you need to have an angel on your side. A study by the University of New Hampshire's Center for Venture Investigation showed that "angel investors" - high-net-worth people willing to invest in entrepreneurial businesses at an early stage - shelled out a lot more than $18 billion into early-stage firms final year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, even so, is not an straightforward job. Safer Smokes Inc. is 1 business that understands the challenge of attracting the appropriate investors. This improvement-stage firm is tapping the smoking cessation marketplace with a distinctive tobacco-free of charge, nicotine-totally free smoke referred to as Bravo, which has the look of a classic cigarette and burns like tobacco, but is in fact produced from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit gradually," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it may possibly be also soon to approach big venture capital firms, but time to move beyond networking with family and 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 via to the true investment opportunity," said Torigian. So how do organizations like Safer Smokes attract their angel?
- Have a clear-cut target marketplace 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 firms that are likely to show positive cash flow inside their initial 18 months, so getting these kinds of statistics about your market can be an incentive.
- Match the company strategy objectives to the angel's threat tolerance. Investors want to know the product or service will be unique and properly-cultivated. Safer Smokes has a patented resolution that firm officials say will "impact the landscape of the health care sector." company formation
