A great product and a brilliant team can only get you so far. To get off the ground and accelerate, you need angel investors for your startup. That’s what all great companies in the tech, biotech, medicine, and fintech worlds have in common.
If you’re an early-stage founder, finding angel investors for your startup is surely on your mind. A seed or Series A investment from a formidable angel investor doesn’t just bring funding to your startup. It also opens the door to a world of opportunities.
One of the most striking figures in the startup world is that close to 80 percent of startups fail to move from seed to Series A. For a founder, this means that finding the capital necessary to scale the product or service can be a daunting challenge.
Why you need the right angel investors for your startup
Angel investors for your startup won’t just bring in the necessary funds. Getting the right investor can help you and your startup in several ways:
Potential customers: If you’re in B2B or creating a SaaS product, what you need early on are a few customers who vouch for your product. This can be a challenge if you attempt it independently. An angel investor for your startup can introduce your product to potential customers in their network and get you credibility.
Valuable suggestions: As a founder, you want suggestions and feedback on your product before it begins to gain traction. Once customers find out visible flaws, it will open doors for competitors. Angel investors for your startup can help unearth drawbacks and spot opportunities, allowing you to make the necessary changes.
Access to more investors: Angel investors for your startup can introduce you to potential investors in their networks. These are who you might need in later rounds, and they would be more likely to believe someone endorsed by one of their peers. Remember, credibility begets credibility.
Media attention: Being funded by the right angel investors can put you in the limelight. As your funding makes the news, more people will hear about your product. This visibility is otherwise expensive and will take substantially longer if you were to do it on your own. With more attention, it will be easier to meet subsequent investors.
9 ways to find angel investors for your startup
If you are a founder, these are the proven ways in which you can find angel investors and put your startup on the fast track.
1. AngelList
One of the most popular platforms for early-stage startups, AngelList, is where you can find potential investors. More than 12,000 startups have found investors through the platform, and the total volume of deals is around $13.5B. Of these startups, 57 have gone on to become unicorns. AngelList boasts of a market share of 57 percent in top-tier VC deals in the US.
Discord, Wise, Postmates, and Robinhood are some of the names that found investors through AngelList. While it’s primarily for tech startups, founders from other domains can also find investors here. You can create a personal and company profile to get a listing in their directory. This gives you exposure and puts you in front of angel investors actively looking to fund startups.
2. Angel Capital Association
If you’re looking for angel investors for your startup, Angel Capital Association is another source you should consider. Focusing on seed investment for early-stage startups, this group has accredited angel investors with high net worth who come with entrepreneurial and investment experience.
It’s easy to get involved with Angel Capital Association since they provide direct access to a comprehensive list of angel investors. The platform has more than 14,000 investors who are a close-knit community. That’s the kind of network that can make future partnerships easy. There are also regular webinars, workshops, and other resources for startups.
3. Gust
Those searching for credible angel investors should look at Gust, a professional network of startups, accredited investors, and accelerators. While it has a group of highly qualified and experienced investors, what makes it a worthwhile proposition is the fact that Gust helps founders discover the best course of action for their investments.
The Gust community has more than 800,000 founders. This gives you access to a large number of potential partners. Importantly, the network can also match your startup with more than 300 of the top accelerators in the world and help you apply to over 750 leading angel investment groups in the world.
4. Angel Forum
As the name suggests, Angel Forum is a platform that connects investors and startups through a community aimed at funding angel rounds. One of the biggest advantages of the platform is the versatility of its members. You get both seasoned investors with substantial experience in investing and new investors looking for startups to fund.
With a presence in Canada and the US, Angel Forum offers resources and events to connect investors and founders. If you’re trying to find angel investors for your startup, this is a platform you should seriously consider.
5. Angel Investment Network
Angel Investment Network is one of the most popular and reliable platforms to find angel investors for your startup. Based in the US, Angel Investment Network gives founders access to more than 280,000 investors in their directory. This is where great people and great businesses meet. The platform’s primary objective is to empower startups with the capital, knowledge, and contacts they need to succeed.
The platform allows founders to pitch and also publish it for potential investors to see. If an investor finds your pitch and is interested, they can contact you directly. This makes the process of connecting with angel investors for your startup significantly easy. There is also a supplementary option that allows founders to extend their reach.
6. LinkedIn
An effective way to find angel investors for your startup is through LinkedIn Groups. There are thriving communities where members can ask questions, give actionable feedback, and engage with others. For entrepreneurs, there are over 8,000 such groups on the platform. Here are some of the most popular that you need to know about:
- Band of Entrepreneurs has over 30,000 members who offer support, education, mentoring, and networking opportunities to startups. You can find a lot about technology, finance, and legal help in this group.
- Small Business Network by Entrepreneurs HQ consists of more than 280,000 members who are entrepreneurs, founders, and small business owners. You can find marketing agency owners, thought leaders, domain experts, and coaches here.
- Established by Beate Chelette in 2010, Entrepreneur and Small Business Forum has around 59,000 members. This is especially useful for founders looking to scale their impact and find a viable growth mindset.
- With over 76,000 members, Startup and Entrepreneurs Network is another group that helps you find angel investors for your startup. Founders can submit their proposals to the network to be seen by potential investors.
7. Networking events
Most successful founders know that one of the most practical ways to get an angel investor for their startup is by attending networking events. This allows you to connect in person with potential investors. The first step is to find out about such events in your region and nearby cities. Most events may charge you an attendance fee but it will be worth it if the event features credible investors.
Prepare a two-minute version of your pitch and have additional details at hand in case potential investors ask for them. Along with investors, look out for thought leaders and industry experts and share your product with them. If convinced, they might be able to connect you with investors in their networks who may not be at the event.
8. Friends and family
The angel investors for your startup could be from your family or friends. If you are not looking at a significant amount and if someone close to you has sufficient funds, this is an easy way to get started.
Pitch your product to your family and friends. But do remember that financial transactions with them can get complicated especially if things take longer than expected and you plan to raise funds from external investors later.
9. School and college alumni
An underrated option when it comes to finding angel investors for your startup is your school and college alumni. Maybe there’s someone from a previous batch who’s an angel investor or who’s connected to the investing world. Since you have something in common, they will be more likely to listen to your pitch.
Go through your online alumni directories and search on LinkedIn using your school or college as a filter. You can also approach the faculty at your institution and ask them if they know any angel investors in your alumni groups.
In short
Finding the right angel investors for your startup is just as important as coming up with a great product. It makes it easy to survive when you’re just getting started and don’t have enough revenue. More importantly, it connects you with people who can accelerate your startup’s growth.