Finding angel investors can be just as big of a challenge as securing funding through pitches. Founders of startups need to know where to look in order to begin to hunt for funding for their startups. Working with angel investors is one of the most beneficial ways for founders to secure funding without accumulating debt. They use their own money in exchange for equity in the company and are usually a long-term partnership.

Many angel investors are looking to fund their next venture and help launch a successful startup. This article will go over what to look for in an angel investor and the top 5 platforms and networks that can help you find an angel investor in your industry to help boost your business’s chance of success.

What to Look for in Angel Investors

Startups need financial backing to grow, and angel investors are one of the best ways to secure financing. You wouldn’t want to choose just anyone to work with and all angel investors are not the same. The range of quality and experience is massive and can impact your company’s success. Taking capital from any source can be tempting, but it pays off to do your research and understand the financial partner you want to work with long-term. Here are some recommendations of what to look for in angel investors.

Experience

– Ideally, you will want to work with an investor who has experience in your industry or experience with running a business. You want to look for knowledge or skills that can complement your startup to help fill the gaps in your own knowledge and background. They can provide valuable insights that can prevent you from making costly mistakes and set you on a good path toward success.

Great Reputation

– Partnering with an angel investor with a good reputation can help put your mind at ease, knowing you made the right decision. Angel investors with a good reputation can also open doors for you and your startup and gain access to potential customers, partners, and even future investors in later rounds.

High Net Worth

– Working with a smaller group of angel investors with a high net worth versus working with a larger number of small investors is more beneficial in the long run. With high-net-worth individuals, you are more likely to secure the funds for longer and have fewer people to work with, which requires stakes in your company.

Realistic Expectations

– Angel Investors with a realistic expectation for the timeline to expect your startup to grow and reach your goals are more likely to be successful in their partnerships. You want to make sure they have realistic expectations of how profitable your company can be to ensure you don’t end up feeling pressured to take on more risks to reward their returns in the company.

Top 5 Angel Investor Networks and Platforms

Angel Investors are a great starting point to getting funding for your startup. Finding ones to financially back your startup is another story. Here are the top 5 networks and platforms for you to find an angel investor to fund your business.

AngelList

– AngelList is a massive startup platform dedicated to helping tech startups raise funds through angel investors, recruit staff, and launch their businesses. The website has over 5 million members of startups and angel investors and provides employment opportunities for people looking to join a startup venture.

The tool can be a valuable asset for startups to find funding and to find employees to help build their businesses. All you need to do is create a company profile to start to look for investors and get some visibility. AngelList is known for being responsible for over 35% of the top-tier venture capital deals in the United States.

AngelMatch

– AngelMatch is one of the largest categorized databases of angel investors and venture capitalists. This product helps founders save hundreds of hours of their time searching for investors manually. Founders can get connected with investors in minutes using this platform as they have over 94,000 investors in their database.

SeedInvest

– SeedInvest is one of the best angel financing resources for entrepreneurs and startups as one of the world’s largest startup communities. The website aims to help fund tech startups to get their business off the ground through the investment of angel investors.

The screening process is done through the website through a pre-screening process and the investments are funded from crowdfunding. The site has valuable resources to help entrepreneurs beyond providing funding, such as helping to recruit staff and develop hiring strategies and many other business insights for new and upcoming startups.

ACA

– The Angel Capital Association, or ACA, is a group of accredited angel investors and is the largest professional development organization for helping fund early-stage capital in startups and small businesses. ACA has over 15,000 member accredited angel investors with connections or over 250 angel groups and offices.

The ACA’s website allows you to find angels and learn more about angel investments while staying current on events and news. It offers a wealth of knowledge and has accreditation to help startups make an informed decision on who they want to back them.

Angel Investment Network

– The Angel Investment Network is a global non-profit platform with over 300,000 potential investors, making it one of the world’s largest groups of angel investors. The platform allows startup founders to create an account and create and publish a pitch deck directly on their platform, making it an easy way to gain visibility and allow investors to see the value and potential of startups. Investors can get in touch with founders directly through the website.

Startups can receive valuable assistance throughout the journey and have access to one of the largest variety of angel investors available.

Gust

– Gust is unique in that it is a SaaS platform that connects 80 angel networks and provides a more flexible means to obtain investment. Gust gives you a platform to tell your startup’s story in one place with access to angel investors across multiple platforms and networks. You have the opportunity to connect beyond angel investors and apply to incubators and accelerators to take your startup to the next level.

Other Tips to Find Angel Investors

Utilizing platforms and networks to find angel investors can connect you with an abundance of opportunities to connect with the right investor for you. There’s no right or wrong way to secure funding. It depends on what works best for your startup. Here are some other places you can look for angel investors beyond online platforms.

Friends and Family

– One of the best places to start before you even begin looking elsewhere is to reach out to your friends and family, especially during seed rounds. Do you have high net worth friends and family that might be willing to invest in your startup? Having a connection that can be mutually beneficial and friendly gives you an advantage with a friendly person who is likely to be more flexible to work with. Ask around, and you might be surprised to find a family member who may be willing to invest.

Networking

– Networking with former colleagues or meeting with business owners you already have established connections with. It can be similar to cold calling, but it may be worth the effect and could lead to a long-term business relationship. You can also find startup events where founders can meet investors and other startups in their industry and begin to develop connections and potentially secure meetings with angel investors.

How to Get an Angel Investor to Invest in Your Startup

Finding angel investors is just the beginning of your journey to find funding for your startup. You need to present your startup’s story and key bits of information compellingly to get them to sign on. Follow these steps to help you secure funding from an angel investor.

1. Craft Your Elevator Pitch – Your angel investors need an upfront short and sweet explanation of your startup, the problem you intend to solve, and the market potential. This is just an introduction.

2. Develop a Pitch – The pitch deck is a more in-depth look at the projects of your startup. Send your potential angel investors a link to your pitch deck so they can review and ask for more information if they see the value.

3. Schedule Meetings – After you’ve managed your initial pitches and your angel investors are interested in learning more, you get the opportunity to meet with your potential investors. In your meeting, you will go over your pitch deck and answer any questions they might have.

4. Repeat – You will likely have to meet with several angel investors before you are able to secure funding. If you get a no, keep going and try again with the next potential angel investors.

Raising funds for your startup can be stressful and finding an angel investor can be even more stressful. Building your network and vetting potential angels is a time-consuming task. Being prepared with information and utilizing the top networks and platforms can get you well on your way to securing funding with less stress and in a much faster timeline. The effort will pay off when you connect with the right angel investor to help you shape your startup into a successful venture.