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If you're an emerging firm with the subsequent wonderful product, sometimes you need to have an angel on your side.
A study by the University of New Hampshire's Center for Venture Analysis showed that "angel investors" - high-net-worth people prepared to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage organizations final year alone, compared to $304 million by venture capitalists.
Obtaining an angel investor, nonetheless, is not an straightforward process. Safer Smokes Inc. is one particular company that understands the challenge of attracting the correct investors.
This development-stage business is tapping the smoking cessation market place with a distinctive tobacco-cost-free, nicotine-cost-free smoke referred to as Bravo, which has the look of a standard cigarette and burns like tobacco, but is really made from lettuce fibers.
"Bravo lets you smoke your way out of the tobacco habit steadily," said Puzant C. Torigian, chief executive officer of Safer Smokes.
For organizations like Safer Smokes, it might be also soon to strategy big venture capital firms, yet time to move beyond networking with family and close friends. Angel investors to the rescue.
"The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see by way of to the genuine investment opportunity," mentioned Torigian.
So how do businesses like Safer Smokes attract their angel?
* Have a clear-cut target market place for your item or service. For example, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.
Most angel investors prefer companies that are most likely to show positive cash flow inside their initial 18 months, so having these sorts of statistics about your market place can be an incentive.
* Match the organization plan objectives to the angel's danger tolerance. Investors want to know the product or service will be distinctive and properly-cultivated. Safer Smokes has a patented remedy that firm officials say will "have an effect on the landscape of the well being care sector." [http://www.ideaangels.com/ setting up a business]