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If you are an emerging company with the subsequent excellent product, at times you require an angel on your side. A study by the University of New Hampshire's Center for Venture Investigation showed that "angel investors" - high-net-worth people willing to invest in entrepreneurial organizations at an early stage - shelled out more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists. Discovering an angel investor, however, is not an effortless activity. Safer Smokes Inc. is one business that understands the challenge of attracting the appropriate investors. This development-stage firm is tapping the smoking cessation market place with a unique tobacco-free of charge, nicotine-free smoke named Bravo, which has the look of a standard cigarette and burns like tobacco, but is really created 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 could be too soon to approach large venture capital firms, yet time to move beyond networking with family and friends. 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 via to the true investment chance," said Torigian. So how do companies like Safer Smokes attract their angel?
- Have a clear-cut target market place for your product or service. For example, Safer Smokes is targeting the smoking cessation market place, which has sales approaching $10 billion per year, up from $6 billion just three years ago.
Most angel investors favor firms that are likely to show positive money flow within their very first 18 months, so getting these sorts of statistics about your marketplace can be an incentive.
- Match the organization program objectives to the angel's threat tolerance. Investors want to know the item or service will be distinctive and well-cultivated. Safer Smokes has a patented resolution that firm officials say will "have an effect on the landscape of the wellness care sector." company formation
