Chicago is the 3rd largest city in America and one that is emerging as a major entrepreneurial hub. Grubhub as well as Groupon are proof of successful ventures. This makes Chicago one of the top spots for searching for Angel Investors for your startup.
Choosing Chicago Supporting Factors
To top it, Chicago is home to some of the best universities, the University of Chicago to name one. This has resulted in plenty of talent being available in Chicago. As for technological expertise, there are several ex Motorola engineers leading to a thriving tech scenario in Chicago. This makes Chicago an ideal place to search for Angel Investors Chicago.
Booming Start Up Scenario
In addition, the Mayor is also very supportive of the tech industry. Chicago has ended up attracting a lot of business talent as well. The startup scenario is booming here making it lucrative to find angel investors in Chicago. The return on investment for startups here is 10% more than that in the Bay Area. It has also been noted that the number of startups here has been steadily increasing, with almost one being started every day from the year 2012.
If you want your startup to move from its paper stage to the development stage, you will need Angel investors in Chicago. This is different from venture capital companies. Of course, you can approach your friends or relatives for capital, but it could turn awkward if your startup is not successful.
Another option is to go in for an individual Angel investor. This is also difficult, as they are strangers. These individuals would also prefer to invest their money in a venture investment and not in a small startup. You need to locate investors who understand your specific business and get proper introductions.
For instance, if you’re planning a startup related to video games, you have to research similar startups and access the creators and ask them for leads.
Resources for Angel Lists
You can also check out the Angel List Chicago to find good resources. It is easier to find individual Angels who can invest in your startup this way. OR keep reading to the end as we have an alternative option to save you weeks and months of work.
Angel Investor Networks
There are several such Angel Investor Chicago networks that are led by professionals. They screen deals for their clients and check out potentially risk free and paying startups for their customers. This results in many individuals collectively investing their money in a startup, so you can easily raise the total amount you need.
Hyde Park Angels is a prominent network among angel investors in Chicago. Cornerstone Angels is another option. These are viable investor options for your startup. Browse through the Angel list in order to find viable investors in Chicago.
Offering Unique Value
Angel investor networks of Chicago offer good value to investors as well as startups, which lead to better success rate among startups. They have invested in several thousands of startups in Chicago.
Such investor networks will only invest in a particular location. They will look for talent and good management in the startup before they agree to invest. Startups offering solutions that are market ready and ones that have the potential of solving a unique and important problem will be given priority.
Building your Pitch
In order to get the attention of such angel investors, startups need to build the perfect pitch. You need to inform them of your startup in such a way as to get them to back you. You need to offer a solution that is a game changer in the particular industry in order to grab attention from the investors.
Explain the problem and the solution that you are offering through your startup. Address the people who will benefit from the startup product/service, the market size and so on. Use examples and facts to prove the need for the startup and how it will be a long lasting need for people.
Use anecdotes and metrics to prove your point and show how the solution offered by your startup is unique and compelling. Show how you are going to be better than the competition. Tell them a convincing story about how perfect your team is for offering the right solutions, the capital you will need, how much you already have and how you plan to use it.
Top Startups/Investors for Angel Investors in Chicago
Some of the top startups in Chicago are Raise; BlinkFire Analytics; Belly; Snapsheet; Rocketmiles. On the other side of the coin, you have the top investors in Chicago, namely Sam Yagan, Andrew Williamson, Tao Huang, and many others.
While looking at a startup and considering whether or not to support it, Chicago angel investors usually consider four important aspects about the quality of the startup product/service.
Product or Service Efficiency
The product or the service offered by the startup seeking Angel investors should be efficient. It should save time or money or resources, as this is the main reason people choose to buy a product or service. For instance, even if a product is more expensive, there are buyers for it, if it saves time in the long run.
Product or Service Viability
Secondly, the product or service should be economically viable. The costs incurred by the startup in producing it should be proportional to the value created. The costs should be competitive when compared to the competition in the niche industry.
Product or Service Sustainability
The product or service must also be sustainable. It should be environmentally friendly, as more and more customers are searching for such solutions.
Product or Service Convenience
The product or service offered by the startup seeking angel investment must also offer convenience to users. It should make life easier for the end consumer in some way. Convenience is always a good selling point, so angel investors will be ready to back up any startup offering convenience in any field through their product or service.
Summery – Last Word
If you have a great idea for a startup, check out the top Angel Investors Chicago for financial support. Build an excellent team and offer an efficient product/service. Focus on creating something that will offer benefits to the end user and can be financially viable to you as the startup founder, as well as to the investors. Build relationships, so that your fundraising efforts are faster and more efficient helping you find the perfect investor match.
We curated an angel investors list for you. Save weeks and months of work by using this to start pitching to possible angel investors immediately.