If you’re in the Los Angeles area here is how you attract angel investors in Los Angeles. As many businesses face the challenge of finding initial investment, Angel investors are the solution to get your business in Los Angeles up and running. These are wealthy and experienced individuals who are willing to support a business with funding in exchange for equity.
However, to work with the best investor, you must have a good business idea. This is the only way to raise outside capital for your startup. While this may be a scary step to take, it is essential for the success of your business.
Getting business funding a challenge that confounds a lot of entrepreneurs, with these 6 key steps, you can easily get angel investors in Los Angeles to fund your startup:
Step# 1: Consult Angel Investor Platforms
There are platforms that connect entrepreneurs with angel investors in Los Angeles who are willing to financially back your startup. The advent of the internet and technology has made it possible to find the right investor for you. These investor platforms include:
Online Platforms for Angel Investors in Los Angeles
Angel investors may like to remain anonymous. However, the internet has paved way for directory-style websites that will allow you to connect with global investors through the internet. Taking advantage of these platforms will allow you to pitch your idea to potential investors.
There are a number of angel investors events that are held across various country. With a bit of planning, you will have the opportunity to pitch your business idea to thousands of interested investors who may help to kick start your business.
Angel Investment Networking Groups
By contacting an investment network, you can directly pitch your idea to interested parties. While this may sound like the easiest way to meet an angel investor, it is often the most challenging. This is because angel investors are known to screen for ideas before looking at them. Without a connection or advocate in such networks, your request will be lost in the thousands that are received on a daily basis.
Crowd Funding Sites
These give you access to many different types of investors. With an interest to participate in the next big projects and the availability of philanthropists who are bent on helping entrepreneurs to realize their dream, crowdfunding sites are focused on incentivizing angel investors in Los Angeles.
Private Equity Firms
Considered a traditional path to investor funding, private equity firms will give you access to angel investment opportunities. However, private equity firms works for startups in their stages to forester good growth potential. The objective of such firms is to reap a significant profit from investing in your businesses.
Remember, you need to be patient to find a good angel investor. Not only do these professionals invest seed capital in your start up, they are also investing in you and your employees. Use these platforms to research and make a decision that is ideal for your business.
Step# 2: Narrow Down Your Prospects
Once you have found the best angel investors for your business, narrow down your prospects by asking yourself the following questions:
- What other companies have the investors invested in? Remember, angel investors typically invest in the same type of companies. As such, you will get a good idea of how the investment will be for you by consulting other companies. Also considering an angel investor versus a venture capitalist is something to consider.
- Do you have any potential contacts at the funded companies? There is a high possibility of investment when angel investors come across companies that are assisting each other. As such, both business venture will be successful. To increase the odds of your startup funding, prove that you bring something to the table by working in close quarters with the agencies companies that the angel investor has previously funded.
Step# 3: Articulate a Unique Value Proposition
Angel investors need to see that you are solving real customer problems by using the most unique and creative methods. The solution you offer must be hard to duplicate, thus referred to as “unique value proposition.” This is a promise that your business endeavors will pay off for both the customers and investors alike. After all, satisfying customers is the sustainable source of value creation. It often gives you a competitive advantage.
Step# 4: Show a Track Record
By showing focus and passion for your startup, it will impossible for angel investors in Los Angeles to pass up on the idea of offering funding. It is best to have a track record of success in other companies. Even if your past startups have failed, showcase what you have learned and what you intend to do differently this time. Investors consider entrepreneurs who are ready to go the extra mile. You need to show that you can adapt to the ever-changing business environment.
Step#5: Have a Business Model that Shows Return on Investment (ROI)
Angel investors believe that your business is addressing a market that will grow sufficiently and will prove reliable even in the ability to return their money in less than 10 years. This is essential for the business operation will let the investor know how your business will perform down the line.
Step# 6: Put Forth the Right Amount of Effort to Raise Capital
Once you have identified a lead investor, it may take some time to negotiate a term sheet for capital. Remember, angel investors are turned off by excuses. They want to work with a dedicated individual showcase commitment and dedication and then build up, proving that you are ready to meet your goals. This will motivate investors to help you get to the next level. Do whatever it makes to prove that you love what you are done. The goal is to use all means to raise enough capital.
Finding angel investors in Los Angeles is not the easiest task. However by following these key steps, your efforts will pay off and your business will get funding. Needless to say, the experience than an angel investor can provide will be critical to the success of your business. Do not overlook this possibility of financing. There are a wealth of persons with essential skills and funding that are willing to invest.