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How To Find Angel Investors

 

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.

What do you understand by Angel investors?
An angel investor (also known as a private investor, seed investor, or angel funder) is a high net worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur's family and friends.

Difference between Angel Investors and Venture Capitalist

Business angels are individuals, often successful business people, who are using their own funds to invest in businesses they like, whereas venture capitalists manage the pooled money of others in a professionally-managed fundAngel investors and venture capital funds focus on businesses in different life cycles.


You can Join  Indian Angel Network  

 For more information and Mentoring


For other articles:

Lacking time and money for your startup? 11 strategies to get you started with limited resources


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