How To Find An Angel Investor For Free

Is It Possible To Learn How To Find An Angel Investor For Free?

Many people want to know how to find an angel investor for free so here are some points to get you thinking.

If you’re searching for less than one million dollars, tap into a local angel network.

If you cannot raise one million dollars in angel investment, your idea might not be as good as you think.

Or most likely your idea is not a fit for angel investment and another way of generating cash would be better even if it takes a longer time.

Perhaps you are doing too much and juggling the hats.

Seek help through local business development agencies, SCORE groups, or tech incubators.

These people are all tied to all the fund-raising network in all the states.

Consider taking on contract work to fund your product development or go directly to the end customers and grow a list that you can sell to.

Starting a Business With Angel Investment

The media portrays the easy and fast source of capital for a business to be venture funding.

Therefore, a lot of people believe venture financing or angel investors are the only sources of capital.

They also believe that this will be free or a quick option. However, that is far from the truth if you want to go down the route of gaining an investor.

At the different phases of growth, an investment from a venture capital company means a loss of equity.

And before you get any money you need to be able to demonstrate that you have a real solid business with a well-organised profit & loss statement. Plus, a balance sheet needs to be clear and outlined.

Alternatively, there are a number of sources of funding an early-stage company may call upon if the business is in the technology arena.

If you’re doing basic or pre-product research, spend some time to submit for grants.

Though this is time-intensive and certainly not the quickest way to raise money, the authorities in addition to other grant funding bureaus do not need ownership in your business.

SBIR Grants

SBIR grant funding offers a six month period I grant for $100,000.

Followed by a significantly greater grant for Stage II, from $500,000 to $750,000.

Should you acquire two of these grants and apply for, you might find a good beginning.

Bank Loans

Your company needs a little infusion of money and if you have an excellent relationship with your bank you might find a SBA loan.

In the modern world, a bank will lend from the decision of a computer mostly and the bank manager will ask if your client base is reputable.

A lot of people are afraid to tap debt sources since they don’t want the extra debt if the business fails.

If you do not believe in the business enough to place your very own credit behind it, why should anyone else?

Asset Loans

In case you have got the proper equipment or individuals to handle little contracts on a part-time basis, use that revenue as a financing source.

Join an incubator to take benefit of the services they provide for a lower price.

Bartering is another great way to find the employment of spaces or equipment that could be prohibitively expensive.

Importantly, use that creativity to finance your business and save the enterprise capital for the growth stages.

This concludes today’s summary on how to find an angel investor for free.