How To Connect With Angel Investor Groups
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Angel investor capital is the best type of funding to obtain for a startup once all other funding options (money from friends and family, personal savings, bank loans, and credit cards) have been exhausted.

The most effective way of finding the right angel investor is for the entrepreneur to actively seek industry-specific investors and perform basic research on the angel investors they plan to approach.

1. Just ask around
Often times an entrepreneur in need of angel capital can ask their business associates and acquaintances. One’s personal accountant, banker, and lawyer serve as great sources to inquire since they may have clients who are accredited angel investors. Another positive aspect of asking personal contacts is that it increases an entrepreneur’s chance of acquiring financing from people that s/he may already know through family, friends, colleagues, etc. The farther the entrepreneur’s relationship is to the investor, the more likely the entrepreneur will not be able to easily secure such funding; therefore, it is always a great idea for new business owners to first ask those they have direct association with before approaching others.

For those who do not have much luck in finding an accredited angel investor through direct association, it is important to mention that although it may be difficult, it is not completely impossible to still find the right angel investor. One important point that new entrepreneurs should keep in mind is that their business idea must meet an angel investor’s expectations. The innovative idea(s) of the entrepreneurs must be something that customers will be willing to purchase, showing potential for a lucrative return.

In addition, any new entrepreneur who plans to approach an angel investor should be ready to submit their company’s business plan which must be prepared as concise as possible. Several quality references should also be made available in order to confirm an entrepreneur’s credibility. Lastly, new business owners should not only ask around but they should also be patient and keep an open mind since potential angel investors can be anywhere.

2. Network with others
One way in which entrepreneurs can easily establish a group of contacts is by joining industry-specific professional organizations or trade groups. By attending these meetings, conferences, and social events on a regular basis, they can clearly become acquainted with successful business owners in any given field.

The entrepreneur can also grow their network by attending investor fairs and making presentations at these gatherings. This not only provides them with a good amount of exposure but will also generate a considerable amount of audience feedback. The response of others is crucial for strengthening or revising one’s business plans and goals. It also gives the new business owner a sense of what the general public really feels about the product(s) and how the product(s) and service(s) will perform on the market. The Small Business Administration (SBA) office or a local university business school can provide information on such events.

In addition, an entrepreneur can inconspicuously inquire about successful members of their industry at these gatherings. Experienced investors provide valuable insight and advice and serve as individuals who are worthy to network with. As with every personal relationship, it is also best to locate a “common ground” with a prospective angel. When a common basis is established among both parties, it is more likely that an entrepreneur’s funding proposal will be taken more seriously.

The goal of making contact with these successful industry investors is to make a good impression and for the opportunity to present their pitch to an angel group. It is also important to follow through any leads that have been established.

3. Go online
Websites such as can provide fast and effective ways for small business owners to locate potential investors. This centralized network pools together both entrepreneurs and prospective investors from around the globe, where member biographies/profiles are featured and organized according to the area of industry. Forums and support groups are also available through this online community and provide a significant means of resources that an entrepreneur needs in finding angel capital. Both parties are encouraged to register at this site so they can have an opportunity to learn about each other for a possible “match.”

Please browse our related articles for list of angel investors.

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