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If you are an emerging company with the next excellent item, often you need to have 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 firms 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. Obtaining an angel investor, nevertheless, is not an simple task. Safer Smokes Inc. is 1 organization that understands the challenge of attracting the proper investors. This development-stage organization is tapping the smoking cessation marketplace with a exclusive tobacco-cost-free, nicotine-free smoke referred to as Bravo, which has the look 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 gradually," mentioned Puzant C. Torigian, chief executive officer of Safer Smokes. For firms like Safer Smokes, it could be too soon to strategy huge venture capital firms, however time to move beyond networking with family members and buddies. Angel investors to the rescue. "The challenge for raising capital in today's market place is in harnessing the courage and vision of the angel to see by way of to the actual investment chance," said Torigian. So how do companies like Safer Smokes attract their angel?

• Have a clear-cut target industry for your item or service. For example, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $ten billion per year, up from $6 billion just three years ago.

Most angel investors prefer businesses that are most likely to show positive money flow inside their first 18 months, so getting these kinds of statistics about your industry can be an incentive.

• Match the enterprise program objectives to the angel's risk tolerance. Investors want to know the item or service will be special and properly-cultivated. Safer Smokes has a patented answer that business officials say will "impact the landscape of the wellness care market." idea angels com