Angel investors are very much in demand these days. It is a popular belief that if you have a good idea, find a good team and invest in the right startup, you will be able to earn a lot of money.
However, finding an angel investor for your startup is no easy task. You will have to do a lot of research and networking to find one. And even if you do, you might not be able to get the money you need.
I am an angel investor myself and I know how hard it is to find a good angel investor for your startup. So I decided to write this article to explain the basics of angel investing and how it works.
What is Angel Investing?
Angel investing is the process of providing funding to startups for which you get a return on investment (ROI). You get your ROI by sharing part of your company’s profits with the angel investor after the startup has made enough money for him/her.
Angel investors are generally considered as high-net-worth individuals who have made their money from other investments such as property, stocks or bonds.
They usually don’t start investing in startups until they have already accumulated some wealth, and they don’t invest in more than two startups at a time because it can be too much work for them.
The process of angel investing is quite simple. You go to an angel investor’s office, meet and convince them that your startup is worth investing in. If they like your idea, they will invest a certain amount of money into your startup. They will then take a small share of the company’s profits after it has made enough money for them.
How to Find an Angel Investor?
There are many ways to find an angel investor for your startup. I would recommend the following ways:
You can start networking with people who have invested in startups before you have done so. It is important that you do this early, because the more connections you have with people who are successful in business, the easier it will be for you to find investors for your startup.
You can also look at successful entrepreneurs’ LinkedIn profiles and look up their email addresses if they don’t have LinkedIn profiles. Networking is the best way to find an angel investor because you can ask them about their experiences and what they are looking for in a startup.
Go to a Startup Conference
Many startups hold startup conferences and if you go to one, you will have the opportunity to meet many angel investors. You can approach them and ask them if they would be interested in investing in your startup. They might not invest in your startup, but at least you will have made a good impression on them.
Make an Investment Website
You can also create an investment website for your startup if you think that is what will be most effective for finding an angel investor for your startup. You can use this website as a way of showcasing all the features of your product or service, along with pictures of your team members, quotes from users and customer testimonials etc.
This way, people who are interested in investing in startups will be able to find out more about your company without even having to contact you directly by visiting your website (they only need the link to your website).
Pitch Your Startup
You can also try pitching your startup at events such as TED Talks or other conferences. This will be a good way of getting the attention of people who are in charge of angel investing.
You can even set up a page on AngelList, which is a platform for startups to find investors. This way, you will be able to show people your startup without even having to meet them.
Angel investing is a good way of getting your startup funded. However, it is not an easy process, and you will have to put in a lot of work into finding an angel investor for your startup. It is important that you find the right person for your startup and this article should help you do that.
About the Author
I hope that my post has helped you know more about Startups. Feel free to leave a comment and tag me and I will answer them. Follow my profile (alexanderlhk.medium.com) to get the latest content I post to stay ahead of the curve.
I am the Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students learn better. I am also a mentor and angel investor in other Startups of my other interests (Proptech, Fintech, HRtech, Ride-hailing, C2C marketplaces, and SaaS). You can also find me on Cudy for early-stage Startup Founder mentorship and advice.
Connect with me on LinkedIn (https://www.linkedin.com/in/alexanderlhk) if you have further questions. Let me know that you are a reader of my Medium posts in your invitation message.