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If you are an emerging business with the next great product, occasionally you require 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 individuals prepared to invest in entrepreneurial companies at an early stage - shelled out more than $18 billion into early-stage firms last year alone, compared to $304 million by venture capitalists. Finding an angel investor, however, is not an effortless task. Safer Smokes Inc. is 1 business that understands the challenge of attracting the proper investors. This development-stage business is tapping the smoking cessation market with a unique tobacco-totally free, nicotine-cost-free smoke referred to as Bravo, which has the appearance of a conventional cigarette and burns like tobacco, but is truly created from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it may be also soon to strategy large venture capital firms, yet time to move beyond networking with family members and close 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 through to the true investment chance," stated Torigian. So how do organizations like Safer Smokes attract their angel?
- Have a clear-cut target marketplace for your product or service. For example, Safer Smokes is targeting the smoking cessation market, which has sales approaching $10 billion per year, up from $6 billion just three years ago.
Most angel investors prefer firms that are most likely to show positive cash flow within their initial 18 months, so getting these types of statistics about your market place can be an incentive.
- Match the enterprise plan objectives to the angel's risk tolerance. Investors want to know the product or service will be distinctive and well-cultivated. Safer Smokes has a patented resolution that business officials say will "influence the landscape of the wellness care industry." ideangels
