By Brett Farmiloe
Where can entrepreneurs find local angel investors to invest in their startup? To help you locate this source of funding, we asked C-suite executives and experienced entrepreneurs for their best recommendations. From joining an angel investment network to attending local startup events, check out these 10 strategies.
Where to find angel investors
1. Get to know your local chamber of commerce
“Most towns and cities have a chamber of commerce, which offers resources of all kinds to local businesses. Depending on the size of your town, the chamber of commerce may have connections with bigger investors and institutions which could help fund your venture. When looking for potential local investment, try your local.”
—Dan Potter, CRAFTD
2. Attend local startup and accelerator events
“One way a company founder can find local angel investors is by attending startup events. At these events, founders can network with other entrepreneurs and meet potential investors who are interested in funding new businesses. Many startups also give pitches at these events, which can be a great way to showcase their company and attract interest from investors. Many cities have organizations that connect startups with angel investors, so founders can also reach out to these groups to see if they have any leads on potential investors.”
—Mogale Modisane, ToolsGaloreHQ
3. Join the Angel Investment Network
“I prefer using the
Angel Investment Network. It’s an amazing platform for starters and investors, and gives you access to investors worldwide. Once you are registered, you just publish your details, and investors who see your pitch will directly contact you. This platform is really effective in eliminating extra reach and will save you time as well.”
4. Take advantage of online platforms
“In the past few years, there has been an explosion of online platforms dedicated to angel investors. These platforms are a great place to research who in your area might invest in your startup.
Fundable.com is an example of a platform with thousands of accredited investors.
“Searching by location can help you narrow down the angel investors closest to you. If you meet the requirements and carefully follow the rules on each site, before long, you may find yourself in touch with angel investors nearby willing to invest in your business.”
—Anthony Martin, Choice Mutual
5. Network with LinkedIn referrals
“Don’t underestimate the power of online networking, even when seeking local angel investors. While there can be a certain amount of door knocking involved in finding local investors, LinkedIn is an effective tool for reaching out to established local angel investors.
This only works, however, if you have a great LinkedIn profile that is active and up-to-date. I recommend contacting mentors and colleagues who can give you endorsements that apply to your business. This will impress investors when they view your profile after you reach out to them via DM.”
6. Reach out on a crowdfunding platform
“By using crowdfunding, you’re not only opening doors to get funding from the people in your network, but you’re also making your idea and product public to gain the traction needed for an angel investor who is interested in finding you. Crowdfunding is widely shared and can help you raise awareness of your brand and startup, making it easily picked up by someone who is interested and ready to invest.”
7. Get help from a mentor capitalist
“Mentor capitalists are experienced entrepreneurs who will invest their time and resources in early-stage companies. They typically provide mentorship and guidance, as well as financial support. They are often connected to a network of other local angel investors, which can be a valuable resource for a company founder seeking investment. Additionally, these specialists may be familiar with local resources and programs that can help a company get started and grow.”
—Ludovic Chung-Sao, Zen Soundproof
9. Ask your audience on social media
“One somewhat underestimated way a founder can find a local investor is through social media. After all, people who follow you on social media are already engaged and interested in what you are creating. Use social media to put your feelers out—state what you are looking for and ask your followers for leads. If your future angel investor is not currently following you, they may be just one degree of separation away from you.”
9. Use virtual investor networks
“Your fastest route to angel investors in your area is a virtual network like the
Angel Capital Association. These networks are tight-knit communities between hundreds, and even thousands, of angel investors across the globe. While reaching out to local entrepreneurs can offer great investor leads, finding the right relationship fit can take some time. When you use a network to reach thousands of investors at once, you find high-quality leads more quickly. Even if the right investor isn’t using a network, those on the network can introduce you to offline contacts they think would be a great fit.”
10. Get connected with incubators
“Incubators serve a distinct purpose in that they nurture and develop entrepreneurs and startups so that investors have more meaningful opportunities. A mistake most founders make is only looking at local incubators. Perhaps you have a popular “startup hub” or coworking space in your city. That space, while valuable, is severely limited to those who are interested in and willing to take part. While you can still start locally, focus more on seeking incubators throughout the world that serve your industry and your specific sector. They will know the investors who would be most interested in what you’re doing.”