Flocks of Angels, and All You Need is One

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. Or does it? I’ll come back to that later.

One of the most common questions I get is “How do I find angel investors?” With today’s access to the Internet, and Google searches, it really isn’t that hard. Here are three of the largest flocks:

1. Angel Capital Association (ACA). This is perhaps the most reliable source of information on angel investor groups across the USA, accessible online via Angelsoft. It boasts 448 member-managed groups and VCs, 15,414 investors, and 2,400 new company applications a month. These are joined under the auspices of the Kaufman Foundation.
   
   As an entrepreneur, simply enter your location online, and it will list the angel and VC organizations near you. You can then begin your application to one or more of these organizations right on the same screen.
   
   As a member of the selection committee on one of these local organizations, I use Angelsoft on the investor side to review business plans, deal flow, and help orchestrate presenters at monthly meetings of the local organization.
   


2. Keiretsu Forum. This one claims to be the world’s largest angel investor network, with 750 accredited investor members throughout sixteen chapters on three continents. Since Keiretsu Forum’s founding in 2000, its members have invested over $180M in 200 companies in technology, consumer products, healthcare/life sciences, and real estate.
   
   The Founding Chapter is in Silicon Valley, California, (naturally), and I have a connection there if you need a start. A caveat is that this is a for-profit organization, so fees to present may be significant.
   


3. New England Investment Network. This is a series of templated websites for matching angel investors seeking investment opportunities with entrepreneurs seeking capital. The caveat here is that this network doesn’t have a personal touch, as it only facilitates the exchange of contact information, so the matchmaking is left up to you.
   
   The reach is very broad, however, with 30 branches worldwide covering over 50 countries in Europe, North America, South America, Africa, Asia and Australasia, and over 60,000 members worldwide.

But remember that numbers and locations are not the whole story. The challenge is to find the right angel for your, and for your situation. Here are some basic principles:

• Angels invest in people, more often than they invest in ideas. That means they need to know you, or someone they trust who does know you (warm introduction). For credibility, they need to know you BEFORE you are asking for money.
  


• Angel investors are people too. Investors expect you to understand their motivation, respect their time, and show your integrity in all actions. They probably won’t respond well to high pressure sales tactics, information overload, or bribes.
  


• Angels like to “touch and feel” their investments, so they are generally only interested in local opportunities. It won’t help your case or your workload to do an email blast and follow-up with 60,000 members around the world.

My real message is that the best angel you can find is a local high net-worth individual, with whom you or your advisors have an established prior relationship. So get out there and network today, and you can be one of the lucky ones who is touched by an angel without having to go through hell first.

Marty Zwilling