adapted from "Angel Investing", by Osnabrugge, M.V. and Robinson, R.J.
Financing: Key Documents
angel finance is deemed appropriate, form realistic expectations
of roughly how much money you need and how much equity you are
willing to surrender.
to learn as much as you can about
business angels and how they behave; decide what
type of business angels you prefer in you firm and
what role you want the investor to assume. For example, some
young ventures in need of accounting and finance assistance
often try to find a business angel with such skills to
contribute, in addition to money.
business plan with the latest information, realistic
financial projections, and rough potential
valuations. All too often, investors see poor business plans
that do not explicitly show that the entrepreneur has fully
thought out possible scenarios. Realistic financial projections
show the competence and care of the entrepreneur.
find business angel investors by following any of the ten
principal search methods that include: personal networks;
professional networks; snowballing; formal matching services;
angel alliances; venture capital clubs; electronic matching
services on the Internet; matchmakers; mailing lists and
publications; investee firms.
discriminate between investor types and not just take the
first offer, but rather the one most appropriate for the good of
the firm. Your should also carry out
diligence of their own on potential investors; it certainly
is a two-way street. Once a worthy investor has been found, you
should learn how to hold your own in the
Angel Investors Funding Application
businesses located in United States and Canada)