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Angel Investment Groups and Networks

Many entrepreneurs and small business owners are unsure of How To Work With Angel Investors. In this article, I give you some easy tips for learning how to work with these investors. It is very understandable to be unsure about how to work with angels, but if you follow these tips you should feel more comfortable and confident in your partnership. 606 angel number

 

  1. Educate yourself: We tend to fear the unknown, and judging by the number of people who have asked me “What is an angel investor?” it’s safe to say that angels are relatively unknown to many entrepreneurs and business owners. You probably know that angels are a good resource for funding to small businesses and start-ups but you should really do your homework on the industry. Read as many articles about angels as you can and analyze your prospects so that you can best position your business to appeal to their investment preferences.
  2. Get to know your prospects: If you have a number of angels that you plan on pitching your business to, it’s good to build a professional relationship with them. Have at least a few meetings to get to know your potential partner with the notion in your mind that this person might be working with you and your business for years to come. Try to eliminate any angels that have a personal or professional style that does not mesh well with you or your business, as I’ll describe more in the next step.
  3. Decide whether the angel is right for you: Once you’ve gotten to know the angel, you have a good idea of what a professional working relationship with this person would be like. Angel investing is a lot closer in some ways than simply private equity investing because angels often take on a very active role in fostering your company, so you should be prepared to have a long and close relationship. Ask yourself, is this someone I can work with long-term? If the answer is no, focus on your other prospects. Raising capital is of course a priority but that capital comes with some strings attached and one condition that many angels expect is that you allow them to have some say in the business. If you cannot accept this, then look for a more passive partner or consider other financing options.

 

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