7 Tips to Get Angel investors for startup business

Angel investors are a critical source of capital for startups and early-stage companies. Though plenty of options are available for business fundraising (from crowdfunding to tax credits), angel investors are more known for startups seeking early-stage financing. According to the Small Business Administration’s data, nearly 30,000 businesses in the US receive funds from angel investors every year. In this guide, we’ll explore what angel investing is, how it differs from venture capital investments, and give tips on how to find the right Angel investors for startup business.

What is Angel Investing?  

Angel investors (business angels) are high-net-worth individuals who provide capital for business ventures, startups, or early-stage companies, usually in exchange for equity ownership or convertible debt. 

Traditional funding sources such as banks and venture capital firms often hesitate to fund startups and early-stage companies as they are considered too risky or unproven. Angel investors help bridge this gap by providing financial backing to these companies. 

Business angels come from different backgrounds. They can be wealthy individuals, retired entrepreneurs, executives, or business founders and CEOs. In addition to funds, angel investors can provide guidance, mentorship, feedback, advice, and access to contacts from their prior experience and industry exposure. 

Angel Investors vs. Venture Capitalists

Both angel and venture capital investors provide funding to startups, but there are some critical differences between the two. 

How do you find angel investment opportunities for your startup?

Potential angel investors could be found anywhere from Shark Tank (an American TV show) to X (formerly Twitter). If you’re feeling lost about where to start, here are some of the best ways to find angel investors.

1. Angel Investment Networks & Groups

• Explore local angel investor networks and groups and handle the pitch events they organize.
• Leverage online platforms that connect startups and early-stage companies with angel investors. 

Here are some of the leading angel investment networks and groups you can explore to raise money for your business:

• Start3r
• AngelList
• Tech Coast Angels
• Angel Capital Association
• Angel Forum
• Angel Investment Network
• Investor Hunt

2. Networking Events

• Take care of industry events and conferences to utilize networking opportunities with angel investors and like-minded professionals. 
• Engage in quick conversations with attendees, speakers, exhibitors, and panelists.
• Be proactive in introducing yourself, exchanging business cards, and expressing genuine interest in their work.
• Even if you talk to someone who isn’t an angel investor, they could have the key to a valuable connection you’re looking for.

3. Social Media

• Use social media to share your startup journey, successes and failures, and learning experiences. This can attract angel investors.
• Engage with the content investors post on social media like X and LinkedIn. Comment thoughtfully on their posts, and reach out to them with a compelling and concise pitch at the right time. 
• Virtual startup events hosted via social media are an excellent opportunity to boost your startup’s visibility and grab the attention of potential angel investors. Utilize the networking opportunities to interact with fellow entrepreneurs and angel investors. 

4. Personal Networks

• Reach out to friends, family members, former colleagues, and mentors. It is one of the most comfortable and accessible ways to secure funding. 
• Find personal connections who may be willing to invest in your business (e.g., wealthy relatives) or introduce you to potential investors.
• Try to share your story or pitch your idea during an informal catchup.
• If you have a smaller network of personal contacts, consider attending local networking events and conferences to meet potential investors.

5. Business Pitch Competitions

• Participate in business pitch competitions to introduce your startup to potential angel investors. 
• Whether your pitch appeals to investors or not, you will gain invaluable experiences and feedback for building your presentation skills and refining your startup pitch deck.
• And if you do win a pitch competition, you could get prime time with investors attending the event. 

6. Startup Accelerators and Incubators

• Find and apply for the right startup accelerator to help you hit the road.
• Once your application is accepted, tap into mentor networks and industry experts who can guide and support your startup. These mentors can also connect you to potential angel investors or offer introductions.
• Organize and present at demo days, and investor showcases by accelerators. Use a compelling pitch deck and critical metrics to win investor interest.
• Engage with other participants attending the accelerator program. It may allow you to get introduced to a valuable connection in their network relevant to your funding needs.     
• Build relationships with startup accelerator program organizers, incubator directors, managers, and administrators. Since they have connections to many angel investors, you may get an opportunity to meet a suitable investor.   

7. Startup News and Announcements

• Research online and stay up-to-date with the latest news and updates on startups and funding. Look up resources that publish reports on the startup and investor market performance and future trends.
• Follow startup ecosystems on social media for real-time updates. Look for upcoming events, conferences, and opportunities that allow startups to showcase their ideas, connect with investors, and access mentorship and guidance from experienced professionals.
• Subscribe to online resources that publish valuable content for startup enthusiasts, investors, and industry professionals to stay updated on the latest happenings and inspiring stories from the startup world.

Get Started by Connecting with Angel investors for startup business

The startup fundraising landscape can present unique hurdles for first-time founders, given their lack of experience. A lot of hard work goes behind finding someone who banks on your success. However, vetting potential angels and building your network is essential for securing investments for your startup.

With Start3r, you can expand your potential investor pool by finding people whose experience aligns with your business goals. We make it easier for you to locate, pitch to, and follow up with angel investors. Sign up with Start3r today!