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
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.
– 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.
– 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
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.
– 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
– 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
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 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 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.
– 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
– 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
– 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 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
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.