Attracting Capital From Angels

Brand new businesses often get their first investments from what are known as the Three Fs: Friends, Family, and Fools. These are the people who know the person starting the business personally and are willing to put up their money--not so much because of a high rate of return, but as a favor to their friend. Unfortunately, investments from these types of people are usually only good for attracting a few thousand dollars. Since most businesses need more than that to get off the ground, it then becomes necessary to find capital from angel investors.

Angels need more assurance than friends and family do, though. New businesses are a very risky investment, so it is necessary to show the angel investors what makes this particular business likely to succeed. If the business is a technology company, a working prototype for the technology to be marketed is helpful.

Help from ibank.com: Attracting Capital from Angels
For retail businesses, references from potential customers who can tell angels that they will indeed buy what the business is selling--at the offered price--are helpful. Another very important element of attracting capital is research. Finding out exactly what kind of company an angel is looking to invest in is key. Some investors are more interested in the product or service offered, while others prefer to focus on the customers said business is attracting: who they are and how many there are.

Researching an angel network before applying to them and knowing exactly what they are looking for is an important step in attracting capital from angels. This process is easy and convenient with ibank.com. Their Capital Center matches up businesses with investors and helps make sure that each is what the other is looking for. Questions and other issues can be directed to ibank.com's toll free customer service number, (877) 999-6465.


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