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If you are an emerging company with the subsequent excellent product, often you need an angel on your side. A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth people prepared to invest in entrepreneurial firms at an early stage - shelled out more than $18 billion into early-stage firms last year alone, compared to $304 million by venture capitalists. Locating an angel investor, nevertheless, is not an straightforward task. Safer Smokes Inc. is 1 company that understands the challenge of attracting the right investors. This improvement-stage company is tapping the smoking cessation market with a special tobacco-totally free, nicotine-totally free smoke named Bravo, which has the look of a classic cigarette and burns like tobacco, but is really created from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," mentioned Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it may possibly be also soon to method significant venture capital firms, yet time to move beyond networking with household and pals. Angel investors to the rescue. "The challenge for raising capital in today's industry is in harnessing the courage and vision of the angel to see through to the real investment opportunity," stated Torigian. So how do companies like Safer Smokes attract their angel?
- Have a clear-cut target industry for your product or service. For example, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $10 billion per year, up from $6 billion just three years ago.
Most angel investors favor organizations that are most likely to show positive money flow inside their initial 18 months, so having these kinds of statistics about your market can be an incentive.
- Match the company plan objectives to the angel's threat tolerance. Investors want to know the product or service will be exclusive and properly-cultivated. Safer Smokes has a patented resolution that firm officials say will "affect the landscape of the health care business." company formation
