View source

If you're an emerging organization with the next excellent product, often 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 individuals willing to invest in entrepreneurial businesses at an early stage - shelled out a lot more than $18 billion into early-stage organizations final year alone, compared to $304 million by venture capitalists.
Finding an angel investor, nonetheless, is not an straightforward task. Safer Smokes Inc. is a single firm that understands the challenge of attracting the right investors.
This improvement-stage company is tapping the smoking cessation market with a exclusive tobacco-free of charge, nicotine-totally free smoke called Bravo, which has the look of a standard cigarette and burns like tobacco, but is in fact produced from lettuce fibers.
"Bravo lets you smoke your way out of the tobacco habit steadily," stated Puzant C. Torigian, chief executive officer of Safer Smokes.
For businesses like Safer Smokes, it might be too soon to approach huge venture capital firms, however time to move beyond networking with household and pals. Angel investors to the rescue.
"The challenge for raising capital in today's industry is in harnessing the courage and vision of the angel to see through to the real investment opportunity," said Torigian.
So how do businesses like Safer Smokes attract their angel?
* Have a clear-cut target marketplace for your item 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 organizations that are most likely to show positive money flow inside their initial 18 months, so getting these types 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 distinctive and well-cultivated. Safer Smokes has a patented resolution that company officials say will "impact the landscape of the well being care sector." [http://www.ideaangels.com/ setting up a business]