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If you're an emerging business with the subsequent great item, sometimes you need an angel on your side. A study by the University of New Hampshire's Center for Venture Study showed that "angel investors" - high-net-worth individuals prepared to invest in entrepreneurial businesses at an early stage - shelled out far more than $18 billion into early-stage businesses final year alone, compared to $304 million by venture capitalists. Locating an angel investor, however, is not an effortless activity. Safer Smokes Inc. is a single firm that understands the challenge of attracting the correct investors. This development-stage company is tapping the smoking cessation industry with a special tobacco-cost-free, nicotine-free of charge smoke called Bravo, which has the appearance of a standard cigarette and burns like tobacco, but is truly produced from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit gradually," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For businesses like Safer Smokes, it may be too soon to method large venture capital firms, but time to move beyond networking with loved ones and buddies. Angel investors to the rescue. "The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see through to the real investment chance," said Torigian. So how do companies like Safer Smokes attract their angel?
- Have a clear-cut target market place for your item or service. For instance, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $10 billion per year, up from $6 billion just 3 years ago.
Most angel investors favor firms that are likely to show positive cash flow within their initial 18 months, so getting these kinds of statistics about your market place can be an incentive.
- Match the company program objectives to the angel's risk tolerance. Investors want to know the item or service will be exclusive and well-cultivated. Safer Smokes has a patented answer that organization officials say will "impact the landscape of the wellness care industry." company formation
