You have a fantastic idea for a startup. You know that if you are given a chance, your vision can thrive. But, eventually, you ask yourself the inevitable question: Where to find investors? This article will discuss what angel investors are, where to find angel investors, what angel investors look for when they are planning to invest, and how to get angel investors for your business from the best angel investor sites.
What are Angel Investors?
Angel investors are individuals that invest in potential businesses in exchange for a share of the company’s ownership, usually in the form of equity or royalties. Because of this, they are sometimes known as “equity angels” as well.
Angel investors are usually retired entrepreneurs or executives. The motivation behind their investing may vary, though. Sometimes they are interested in angel investing for reasons other than financial gain, such as staying up to date on current events in a specific industry, helping the next generation of entrepreneurs to develop, and sometimes personal, sentimental reasons.
What Should You Look for in an Angel Investor?
When looking for an angel investor, you want to discover someone who has the same goals and objectives as you have.
- Sufficient funds.
Aside from their potential as mentors, angel investors are there for making your business start. They are called investors because they can invest. Make sure that their investment range is enough for your business.
Preferably, they should have experience in your industry. A person who has gone through and became successful in an area you plan to go through is an enormous advantage. They can see what you cannot from miles away, be it potential opportunities or disasters.
- Compatibility of skills and targets.
Working with a person who can support your weak points can really make you go far. Also, it is crucial to be on the same page about your plans and targets to avoid potential conflicts.
If your angel investor knows and is known by many prominent people in the industry, it can create many opportunities in the future. For example, they can help you find clients, business partners, or even other investors.
What Do Angel Investors Look for?
It is no wonder you are looking for angel investors that can help you but there is another critical part to consider: What do angel investors look for?
- Potential for earning money
If they are not investing in your startup for personal reasons only, they will probably expect their investments returned. They know that it is possible with a strong potential for growth, a good team, and good planning for both good and bad times.
- Potential for earning more than money
Sometimes, angel investors look for things other than money. Since they usually already have money, they start looking for meaning. They want to make a difference or help you make a difference in the industry or in the world. If they see that kind of potential in you and your work, they will be more willing to play their parts.
- Staying active and contributing
Think about this: You have worked hard your entire life, became successful, and achieved almost anything you ever wanted. Your work becomes your lifestyle and defines who you are. Would you be able to give all that excitement up? Perhaps, yes. But some people cannot. They want to stay in business, mentor people like themselves and keep expanding their network.
Platforms You Can Find Angel Investors in 2021
So, at this point, you are probably asking this: Where can I find angel investors?
Figuring out how to find an angel investor may seem a daunting task unless you know where to look. So here are some angel investor websites worth checking.
Angel Investor Platforms
Craigie Capital focuses on early-stage technology startups. Founded in 2010, Craige Capital is primarily experienced in finance, enterprise sales, and technology, among other areas. More than 30 technological businesses have benefited from their equity investments, especially the high-growth and scalable startups. Through Rangewell, they also provide debt financing to firms across the UK.
Seedrs, founded by Jeff Lynn and Carlos Silva in 2012, is located in East London’s Tech City. They are one of the leading online platforms in this area. Every type of investor can use Seedr to invest in firms they believe in to share their success. It was stated that Seedrs’ crowdfunding platform helped collect funds for 250 businesses in 2019.
The Startup Funding Club (SCF Capital)
According to PitchBook.com, SFC Capital is the UK’s most active seed investor. SFC has a unique working model. With the help of their Angel Network and Seed Funds, they help investors reach SEIS and EIS qualifying businesses. They do this either directly or through a portfolio created by SFC’s professional team. SFC managed to receive £10M as part of the Business Investments as part of the Regional Angels Programme to help pursue its aim to back promising early-stage enterprises from all over the United Kingdom.
Roger Schwartz launched ClearlySo in London. Octopus Investments and Big Society Capital and over 40 high-net-worth individuals have invested in the company. As one of the leading impact investment banks of Europe, it only invests in companies and funds that have a positive social, ethical, and/or environmental impact. In addition, they provide financial consulting services to assist with capital raising. Thanks to their vast network of investors and high-net individuals, they raised over £450M for their clients.
Founded in 2012, Firestartr is a platform that assists the most promising digital entrepreneurs. In addition to funding, they draw on their operational experience with leading technology businesses to assist sustainable growth. Combining their industry experience and advisor network enables the new startups to create meaningful connections and accelerate business growth with direct help.
24Haymarket is an investment network comprised of seasoned entrepreneurs, senior operators, and private equity and venture capital investors with extensive experience. Alongside investing their capital and actively supporting the growth agendas of the companies they invest in, they also join the board of the companies they work with. Since their founding in 2011, more than 50 high-growth companies have been invested in by 24Haymarket. They invest up to £5 million in growth companies in the UK and Europe.
Angel Academe is a renowned angel network that has won numerous awards. Most of their investors are women, and they invest in visionary tech firms that include at least one female founder. Among the 35 tech startups, they’ve backed Enterprise Alumni, The Dots, Nuggets, Applied, Doppel, and Higher Steaks.
This blog post is written by Deniz Ege Altıncicek.
Sources: Crunchbase, LinkedIn, startup websites