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Uzone.id – Finding the perfect angel investor feels like online dating. You’ve got to swipe right on the one who you think is perfect for your company, not only has the cash but also understands your vibe and long-term vision.
Not all money is good money. It’s about aligning with the right investor who believes in your mission and offers you more than just financial support.
What’s an Angel Investor?
For your information, angel investors are typically high-net-worth people who invest their own money. That means they’re incentivized to be a bit more cautious in their decision-making, so they tend to come in with lower amounts of money than venture capital firms do.
But here’s the cool part: they’re willing to invest at early stages, like during the seed round—when the company is just getting started, and that’s perfect for your startups.
They also tend to back projects they are personally interested in, whether it’s because they know the founders, it’s in their industry, or it’s just something they really believe in.
On the plus side, they’re often willing to invest at earlier stages such as the seed round. Angel investors are often interested in backing something they’re personally interested in: founders in their local area, companies in their industry, or ideas they believe in.
According to Silicon Valley Bank, finding the right angel investors is going to take a lot of meetings—more than many entrepreneurs expect.
Before you start reaching out for funding, it’s important to build the strategy to find angel investors. It’s no guarantee of success, but it’s a way that could maximize your chances of getting the support you’ll need.
Start to boost your online networking
Almost half of angel investors use their personal networks to find startups they want to invest in. It’s your perfect time to show your networking skills. Whether it’s LinkedIn, Twitter, or startup events, move to where potential angel investors hangout.
You can start by getting closer to angel investors who have expertise or connections in your industry, or people you know or can get you introduced to their connection. Online platforms like LinkedIn can help you with this.
By this strategy, start flexing your networking by sliding into some DMs or strike up conversations at events, pitch competitions, or angel networks.
“I don’t just invest in businesses, I invest in founders I trust,” said Julia McNamara, an early-stage investor.
Remember, it’s about building relationships, not just about getting your pitch right. Angel investing is their personal choice, and it’s your job to make them trust you.
Start with the people you know
It’s going to be tempting to use your connection to an A-list Investor. But most seed-stage companies aren’t ready to pitch a top investor or even take an introductory meeting.
Instead, reach out to people you’ve worked with or know personally. If you don’t have anyone in both your lists, find those who are connected to key insiders and ask to meet them first. You can start with attending industry-specific conferences or explore alumni networks.
It’s not only about money
Angel investors aren’t just walking ATMs. Angel Capital Association stated that around 75 percent of angel investors provide strategic advice beyond funding. So, do not ever use a meeting to ask for money.
Start thinking about what you need–money excluded. It can be expertise, mentorship, or maybe even connections in your industry. At the same time, you can also share your idea, what you need beyond cash, business plan and progress. Your main goal is to get someone excited about what you’re doing and get an agreement to stay in touch.
Actively hunts angel investors
Once you’ve found potential investors, make sure your pitch speaks to them. But how do you find it? You cannot always rely on online relationships, you should start jumping into the real battle.
You can start participating in conferences relevant to your startup’s niche like TechCrunch Disrupt or Web Summit. You can also become an active member of local startup communities and entrepreneurship organizations.
Prepare your pitch and bring business cards to make the most of networking opportunities during these events.
If you feel like you’re done waiting, you can start participating in pitch competitions organized by accelerators, universities, or business organizations. It’s a good promotion for your startup, you can practice your pitch thoroughly and be prepared to answer tough questions about your business model and finances.
These events not only offer the chance to win funding but also provide free exposure to angel investors who attend the event or serve as judges.
Finding the right angel investor is about more than just securing funds; it’s about building a relationship with someone who believes in you and your startup. By understanding what you need, networking smartly, and doing your research, you can connect with an investor who’ll help your startup not just survive but thrive.
