Angel investors, also known as seed investors, are wealthy individuals who provide capital to businesses in the startup stage. Investments may take the form of debt, equity or a mixture of both. Angel investors are a great option for a small business that isn’t ready to take on larger venture capital funding.
There are generally three places to locate angel investors if you’re starting from scratch:
- Angel investor groups: The Angel Capital Association can help small business owners connect with hundreds of angel groups and tens of thousands of individual investors.
- Online platforms: Many websites provide angel investment connections, such as AngelList.
- Individuals: Asking around in a personal network, family, friends, acquaintances and professional contacts is another grassroots way to find an angel investor. Let your intentions be known, and see who you can find.