Many people who start a small business would like to attract investors in order to raise capital for their firm, especially in the start-up stage. Once you exhaust your own capital and that of your family and friends, the second-tier of financing usually lies with angel investors
. One question is always where to find angel investors
. Here is a list of six possible sources of information about how to locate angel investors
for your small business start-up.
1. Your Local Chamber of CommerceVisit your local Chamber of Commerce. They will very possibly have a list of local angel investor associations or venture capital networks that you can contact. Chambers of Commerce are a wealth of information for start-up small businesses.
2. Find out if you Have any Business Incubators in Your Area
Either your Chamber of Commerce or a local college or university can tell you if your town has any business incubator associations operating in your area. If you have one nearby, they undoubtedly have access to networks of angel investors as that is one way they help the firms in their incubators attract financing. Contact the association of business incubators and go talk to them. Let them help you make contact with the angel investors
3. Check out Universities in or Near Your Area
If there is a university in or near your area, it may be a valuable source for finding angel investors
. First, it may have a program in entrepreneur
ship or small business management. If so, it may produce high levels of new businesses and have affiliated angel investors
. Talk to the people at the university and they can possibly hook you up with an angel. The Small Business Development Centers, located at local universities, are another valuable source of information about angel investors
. Talk with the Director of the local SBDC and you may be able to get in touch with the local group of angel investors
4. Regional and State Economic Development Agencies
Check out your regional and state economic development agencies. Their jobs are to increase small business development activity. There is a good chance that they know the networks of angel investors and venture capitalists
in your local area and state.
5. Talk With the Officials at Your BankNot only does your bank make loans, the officials there know financial professionals in the community. Chances are, if there is a network of angel investors in or near your community, they will know a contact person. Check with your bank officials for contact information for an angel investor group.
6. Check With Your Accountant and Your AttorneyYour accountant and your attorney are valuable resources. As professionals in the community, they may know of networks of angel investors. At the very least, they may know of others to refer you to that may be able to get you in touch with angels.