Five Things We Should Know When We Fight For Angel Investment.

If your

To quickly find the right angel investor for your startup, the following five points must be understood:

1. angels invest more often than men.

They also prefer entrepreneurs who are experienced in entrepreneurship, especially those in the current start-up company.

Even if your business model is attractive, you may not be able to get the money if you have experience in related industries.

In this case, you need to find a partner with strong industry expertise and entrepreneurial experience.

2. a detailed business plan is also essential.

Even if you have no plans, relatives and friends may give some financial support, but angel investors want to see real plans, and all professional investors know that even a written plan does not always create a company's entrepreneurs who will almost always fail.

Before you put forward specific solutions, don't forget to clearly summarize the problems you want to solve.

You should also be clear about business models and exit strategies, so that investors will know how you earn money and how and when they will get return on investment.

3. angel investors prefer to deal directly with entrepreneurial teams.

This means that they are usually only interested in local investment opportunities.

Sending large amounts of mail to 60 thousand investors around the world and constantly negotiating with them will not only raise funds for you, but will also bring a lot of work burden.

If there is no local investor who is interested or experienced in your business type, you need to move to Silicon Valley, Boston or the place where your industry is gathering.

Another problem is the scale of investment you need. Angel investors usually limit the amount of investment to less than 250 thousand dollars. Even if many investors co invest, they will rarely consider applying for more than $1 million.

If you need more capital, you should focus on venture capital.

4. financial forecasting and development prospects should be reliable.

Investors do not want to subsidized entrepreneurs who are not willing to challenge themselves, nor do they like to go to the other extreme -- those who can not understand business realities.

From my experience, your five year revenue target is best between $20 million and $100 million. When the figure is too small, the rate of return is low.

Second, you have to find a huge and fast-growing market to offset the huge risk of investing in start-up companies.

According to my experience, the long-term development prospect is better than the scale of 1 billion US dollars, and the annual growth rate should be at least 10%.

If the development prospects fail to reach this level, it may still be a good business, but it is not easy to attract investors.

The 5. industry and your character must be "clean".

History shows that the failure rate of some businesses is very high, and investors usually avoid it.

These include catering, retail, consulting, home office and telemarketing.

Nor do you expect investors to be enthusiastic about your gambling websites, pornographic websites, gambling or debt collection companies.

Angel investors are also mortal. They hope you can understand their motives, respect their time schedules and show honesty and trustworthiness in all kinds of actions.

If you take a high-pressure marketing strategy or harass them with huge amounts of information, or even try to bribe them, their reaction may not be very positive.

If your first application is rejected, don't give up. Most investors will not give a clear reason for refusing.

If you finish the product, sign a few customers, or achieve some other phased goals, they may even call you back.

This is called the strategy of "leaving behind the way", so that once your company's future is reflected, they will have the opportunity to renew your contract.

If you follow the above advice, even in the worst economic situation, there is definitely hope.

According to the prediction of the Wall Street journal, there are at least 140 thousand active angel investors in the United States who invest 20 billion US dollars in new businesses every year.

And you only need one of them.