How to Find Angel Investors

Finding check writers for your startup isn't easy. But you can make it easier. Here's how.

1. Build a compelling business. What does this have to do with finding angel investors? Simple. If you have a compelling business, angel investors will want you to find them. A lousy pitch is, "I have a great idea, and I need $1 million to see if it works." Pass. The right pitch is, "I have a great idea that is already working, and I need $1 million to scale it."

2. Seek relationships, not capital. An angel investment is an act of business intimacy - maybe one of the most intimate acts. You need to develop relationships with people before money becomes a thing. Without the relationship, asking for money is thematically no worse than being a panhandler - only the scale is different.

3. Understand that a network and a good reputation are assets that anyone can create. When you're not building your business, be building your network and a reputation. Make yourself someone people can't wait to meet and work with.

4. Go where they are. Angel investors hang out in angel investment groups. Most towns of size have at least one. They attend entrepreneur meetups and pitch competitions. They often are asked to speak at events or serve on panels because, well, everyone wants to hear what investors have to say.

5. Leverage your service providers. Here's a little inside baseball. When you're a small company, lots of CPAs can credibly do your taxes (but make sure they understand R&D tax credits), lots of lawyers can do your documents, and yes, lots of valuation people can do your 409a. When choosing someone with whom to work, ask them if they can make introductions to angel investors. If the answer is no, find someone who can and will.

6. Use social media. No, don't use social media to connect with someone you think is an angel investor and then hit them up for money. Gross! Go back to Tip #2 - build a relationship. Engage in conversations. Make them curious about what you have going on. Angel investors aren't on social media for their health - one of the reasons they are there is to find opportunities, but if you just blind message them, you may as well send an email to info[at]CanIHaveSomeMoneyNow[dot]com.

Properly and persistently executed, these tips will work. But don't expect results right away. These things take time and, with few exceptions, angel capital is something of a long tail.

We help startups with their pitch, their business plan and strategy. We also work with investors on evaluating potential investments. Please reach out today to set up a time to talk about your startup or investment.