Angel investors are wealthy individuals who invest in early-stage companies using their own money.
Angels practice a high-risk, high-reward investment strategy. They take large stakes in unproven seed and venture-stage businesses, hoping that one out of every ten or 20 investments delivers a substantial pay-off.
Angel investors’ affinity for risk makes them excellent partners for early-stage startups, as does the fact that many Angels are themselves former entrepreneurs, and therefore have a good understanding of what it takes to grow a successful business.
Some people believe the best way to find Angel investors is through personal and professional networks. It’s certainly true that leveraging a personal connection can help you stand apart from the countless other companies searching for funding. So, if you can’t reach Angel investors through your existing network, it might be time to join an established business community like London & Partners.
But tapping your network isn’t the only way to engage an Angel investor. Another effective and sometimes more efficient route is to reach out directly to Angel networks. Angel Networks are essentially communities of Angel investors that pool resources and investment opportunities, many of which have easy-to-use submission portals where you can pitch your business.