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If you are an emerging company with the next fantastic item, sometimes you require an angel on your side. A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth people prepared to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage organizations final year alone, compared to $304 million by venture capitalists. Locating an angel investor, nevertheless, is not an easy activity. Safer Smokes Inc. is one business that understands the challenge of attracting the appropriate investors. This development-stage business is tapping the smoking cessation industry with a distinctive tobacco-free of charge, nicotine-free smoke referred to as Bravo, which has the look of a conventional cigarette and burns like tobacco, but is actually made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," said Puzant C. Torigian, chief executive officer of Safer Smokes. For firms like Safer Smokes, it might be too soon to method huge venture capital firms, but time to move beyond networking with family members and close friends. Angel investors to the rescue. "The challenge for raising capital in today's marketplace is in harnessing the courage and vision of the angel to see through to the true investment chance," mentioned Torigian. So how do organizations like Safer Smokes attract their angel?

• Have a clear-cut target marketplace for your product or service. For example, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.

Most angel investors prefer companies that are most likely to show positive cash flow within their 1st 18 months, so having these sorts of statistics about your industry can be an incentive.

• Match the business strategy objectives to the angel's danger tolerance. Investors want to know the product or service will be exclusive and properly-cultivated. Safer Smokes has a patented solution that company officials say will "have an effect on the landscape of the health care market." ideangels