How To Find Angel Investors
Many entrepreneurs these days don’t find the idea of bootstrapping a business attractive. They are much more comfortable in trading equity of their company to bring in angel investors.
Getting someone to fund you to get your
company off the ground sounds great but those who plan to start a business should be careful while finding
angel investors as they are going to take away a chunk of your company.
The rise of PE firms in India is a clear
indication of how investors with a lot of cash are ready to bet on promising
startups and that has made access to capital much easier for entrepreneurs than
what it was 5 years ago.
As an entrepreneur, you may consider selling
equity for cash but you should be very careful while finding angel investors
for your startup. Obviously, you can’t directly go and ask Vinod Khosla to fund you; so how do you seek investors?
Dave Lavinsky, the co-founder of Growthink, says
an entrepreneur needs to think more like an executive recruiter or “headhunter”
than a fundraiser while finding investors. He outlines the following five key
skills and qualities of a great executive recruiter that every entrepreneur
should embody:
1. Identify the right candidates: a great recruiter can specify the ideal qualifications of and create a
comprehensive list of potential candidates
2. Be outgoing: a great
recruiter needs to get meetings with and speak with the right candidates; to do
this, they can’t be shy
3. Have good listening skills: a great recruiter needs to conduct interviews and really listen to the needs of their clients and candidates
4. Be well organized: a great
recruiter needs to create a big list of candidates and methodically and
repeatedly contact them until they get their desired results
5. Be persistent: a great
recruiter follows up on great candidates; they don’t let initial rejection
deter them
If you are an entrepreneur looking for someone
to fund your business, I hope these tips help you in finding angel investors.
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