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Perhaps the most common question I get asked is “How do I find an Angel Investor?”
Unfortunately they’re is no easy answer like…”Go to this site, sign up and voila, choose an Angel Investor…”
Actually – that’s not exactly accurate, there are two sites that come to mind – The Go Big Network and Funding Post - you should check them out…
I seem to recall some data from somewhere that the majority of Angel Investors invest with a 60 mile radius of where they live – perhaps its an urban myth but that sounds about right to me because, after all, many angels like to be close to their investments so they can get involved to some degree.
In my experience, Angel Investing tends to be on a regional rather than an national or international basis – take that into consideration before you stump up your hard earned cash to sign up to a broad brush internet service that promises to deliver handfuls of Angel Investors like an endless beauty parade – probably not going to happen unless you live in a few areas where they have high concentrations of angels…i.e. New York, San Francisco and perhaps Boston. And if you do live in such an place, why do you need to use a website service anyway – just go hang out at your local coffee roastery…
One point to make is Angel investors (or accredited investors) are defined as:
“a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase;
a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;”
For the full SEC Definition which includes all definitions – go here
…but one point I’d like to make is you can see from the two key definitions above that angels are not that rarified a set of individuals – you could actually be living next door to one right now or perhaps have spoken to a few over the last few weeks or months during some social event. That’s a critical point – in my not so humble opinion, one of the best ways to find an angel investor is literally through networking – so where would I hunt for angel investors?
Here are a few ideas:
Angel Organizations – Angel investors are becoming more sophisticated – once upon a time they looked for investments as individuals and thought of it more as a hobby than anything else – this view of a typical Angel is evolving, to the point where they are increasingly joining together into angel investment groups and have processes and procedures for evaluating investment opportunities. The Band of Angels is one example of this…(Here)
Investment Forums – In many cities, states and countries, there tends to be investment forums – they can be supported, driven or funded by a local government of some kind as a way to encourage new businesses in their regions. Typically they’ll bring together investors, professional advisors and potential customers and encourage young companies to make their presentation. Here’s an example of one investment forum in Connecticut. You’ll probably find one close to you if you do a quick Google search.
Venture Capitalists – Venture capitalists tend to invest in companies a little further along than those considered by angel investors – therefore if you are looking for an angel and have any venture capital relationships, consider reaching out and asking them if there are angel investors they can connect you with – you’ll be surprised with how both investment groups cross-fertilize and help each other out with exciting companies.
Incubators – Incubators are not exactly angel investors but they can often provide many of the resources a young business will need for less than a startup would typically pay – also incubators tend to have good relationships in the startup and therefore investor community. If you are looking to start or grow a business, take a look at an incubator near you and if you hit it off with the folks over there – consider asking them to refer you to a friendly angel.
Other Angels – when you talk to one angel, ask them to refer you to other angels. If they decide not to move forward or if you decide not to move forward with them, keep it friendly and see if they will still refer you to other angels that might be a better fit – obviously this requires some diplomacy but Angels that have been investing for a while tend to sit on boards with other angels and their angel network is probably quite extensive.
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This post could have gone on for another ten thousand words or so and I tackle some of these elements in the supercharger course (here) but for now, its time to tie a bow around this brief “How to Find An Angel Investor” introduction.
I don’t know about other writers but the greatest gift I can get is your questions and comments – so if you appreciated this posting and / or have comments or questions or want me to go into more depth – send me an email or add a comment to this posting.
The critical point to remember when looking for an angel investor though is network, network, network, network – always be ready to tell whoever you are talking to why your business is so exciting – you may not be talking to an angel investor every time at every event or occasion, but I guarantee, the person you are talking too probably knows a few angel investors, whether they know it or not…
Good luck and send me a note or add a comment…
Best
Andrew
Related Outside articles
- When looking for Angel investors, do I put my proposed terms in my business plan / investment proposal? (startups.com)
- Angels vs. Venture Capitalists (pmarca.com)

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