Find Angel Investors for Startups in 2022
"What are the best places to look for angel investors? Will they put money into my business? How to Make a Pitch to Angel Investors."
These are some challenges that every entrepreneur who is planning to begin a startup will face.
"Investors play a critical role in startup success,”.
It takes a lot of work to turn an idea into a billion-dollar business.
Wondering how to find the best angel investors for your startup?
As startup founders, we realized that Angel investors are crucial to building a startup. They are becoming a popular source of early money for startups. But finding the right angel investor is not easy.
The process can be long and frustrating, and often, finding the right person does not happen until the deal has already been made.
It’s quite common to hear people say that the best way to find an investor is by networking and coming up with a solid plan that includes a proposal, financials, and a pitch deck.
But let me tell you more than a trillion dollars are invested in startups every year, both through venture capital and private equity.
The only problem is that there are millions of startups competing for the same amount of money, so it’s not always easy for entrepreneurs to know who to approach.
So, in an attempt to help aspiring entrepreneurs, we compiled a list of the 10 websites which are the best places to find angel investors.
Angel Investors & Venture capitalists: What's the Difference
Angel Investors:Angel investors are organizations or individuals with financial resources who provide companies with start-up capital, credit, or equity. These investors have now become essential investors for a successful business venture.
The internet has brought in an overwhelming influx of platforms for entrepreneurs to find angel investors for their ideas. The given 10 websites in this article for finding angel investors are ranked based on their effectiveness, popularity, and ease of use by entrepreneurs.
For example, in 2013, Forbes included angel investors Paul Buchheit and Jeff Clavier among individuals who helped numerous great firms get off the ground.
Paul had invested in 61 firms as part of a company, including Reddit, Dropbox, and Airbnb. While Jeff was investing via his firm, he had made over 150 investments.
A venture capitalist (VC) is a private equity investor who invests in high-growth firms in return for a share of the company's ownership. It includes Sponsoring new projects or supporting small firms that want to expand but don't have access to the stock market.
For,e.g., A venture capitalist is Google Inc.The phrase does not just apply to individuals, but also to businesses. For example, Google Inc. is a significant venture capitalist. Google Ventures is the company's venture capital section.
The difference: A venture capitalist is a person or company that invests in small businesses with money gathered from investment firms, huge organizations, and pension funds. However, an angel investor is an authorized investor who invests in small enterprises with their own money.
Angel investors are wealthy individuals who put their personal money into businesses. Venture capitalists are Employees of risk capital firms that invest other people's money in businesses.
Top Ten Best websites to find Angel Investors?
AngelList is a massive startup platform. It has more than 5 million members, 100,000+ startups, employment, and investors who are all working together to make things happen. On this platform, you can raise funds from angel investors for free.
With over $1 billion flowing through the site, AngelList has been responsible for over 35 percent of top-tier venture capital deals in the United States.
How does it Work?
It works like this: first, you create a profile for your company. You'll need to fill out an application for that. Think about it carefully. Once you've been accepted, AngelList helps you to connect with investors and workers by allowing you to create a list of possible investors' suggestions that you may contact. Investors can begin the process of funding your firm if they are interested based on your profile.
Startups have the option to raise funds as well as hire employees. Software engineering, data science, product managers, designers, and other positions are all available.
There are more than 2 million candidates, including over 700,000 developers looking to work with companies. Furthermore, the platform hosts 100,000+ startups of various sizes.
Expert Advice: Try to develop a network by encouraging individuals to join or connect to your social media accounts, according to a piece of AngelList advice. However, the best piece of advice we can provide you while utilizing AngelList is to make public highly valuable reasons for individuals to invest in your company.
2. Angel Investment Network
The Angel Investment Network is a global community of investors and entrepreneurs looking for capital. Despite the fact that it began in the United Kingdom, it now has 30 branches and activities in 80 countries.
With approximately 270,000 investors and 1.3 million startups seeking investment, this network is also rather substantial. These users come from all over the world, hailing from various nations and speaking a variety of languages.
You can either register directly on the website or look for investors in your field. You can also choose a certain country or region to look through.
How does it works?
Sign up on this platform to connect with investors and receive funding. We now have 296,929 angel investors globally, with more joining on a daily basis. Use our tried-and-true template to add a pitch for your company.
Source-The Stock Dork
You will be guided through the processes by the on-screen directions. We also have some excellent resources to assist you if you become stuck. If an investor is interested in your pitch, you will be contacted through email and asked to connect.
You'll then have access to their contact information, allowing you to continue talks, arrange calls, set up meetings, and close the deal!Expert Advice: According to experts, You are not required to meet any financial objective if you take cash from investors at any moment. Investors transfer straight to you, therefore there is no commission cost from us.
The Angel Capital Association is a non-profit organization of angel investors and their networks from a variety of businesses.
Though the group concentrates on the USA, it includes networks from Canada, South America, and the Middle East. This takes the overall number of accredited angel investors to over 14,000, with over 20,000 companies in the portfolios of the members.
You can use the website to find angels, learn more about angel investment, and stay up to date on current events and news. It also provides investors with a variety of information and insights to assist them to make better bets and increase earnings.
How does it Work?
You may access the ACA member-only area by logging in on this page. This area of the website contains a variety of tools and publications created by ACA members for ACA members.
As part of the member application process, ACA members have supplied information on their organizational structure, investing methods, topic knowledge, general statistics, and other group characteristics, in addition to tools.
Only ACA members - those who contribute the data - have access to the ACA Members Only Center's searchable database.
Expert Advice: Although the Angel Capital Association does not provide direct funding, its members do. Use this directory to identify ACA members, which include angel groups, recognized platforms, and ACA-affiliated organizations. Visit the websites of each organization to discover more about the group, including investing preferences and methods.
4. Angel Forum
Angel Forum is a startup network established in Canada that focuses on the Canadian market. It is a non-profit organization that helps entrepreneurs connect with angel investors.
This network operates in the British Columbia region of Canada. However, it collaborates with angel investors from all across the world, including the United States.
Startups can join for free, while angel investors must pay a $300 yearly forum membership fee. Each founder has ten minutes to pitch and additional ten minutes for Q&A at pitch events.
The network, on the other hand, has a set of criteria for determining which startups are eligible to provide these presentations at an event.
How does it Work?
As a member of the Angel Forum, you will be able to:
Learn about the present condition of BC's early-stage ecosystem and how you can help it thrive.
Engage with professionals in the field, as well as fresh and seasoned angel investors and entrepreneurs.
Discover a diverse range of early-stage businesses.
Make contact with a network of investors and business owners.
Expert Advice: According to the Angel forum experts, try to build a network by encouraging people to join or connect to your social media profiles. However, the best piece of advice we can provide you when using the Angel forum is to make very useful reasons for people to invest in your firm.
Everything a platform needs to prosper is included in the Gust platform. This network makes it easy to find support with everything from company formation to funding rounds.
On Gust, you'll find over 800,000 companies and 80,000 investment experts. This also makes it a very large network, where a lot of things can happen.
Gust Launch is a company-as-a-service provider. It assists you in forming your firm and running it in the manner that investors anticipate.
Non-disclosure agreements, the formation of a board of directors, a stockholder agreement, and the adoption of bylaws are all examples of this. All of these factors contribute to your funding prospects.
Then there's Accelerate, a service that assists you with the launch of your product. It covers all legal stumbling blocks, provides access to a community, and offers over $100,000 in savings from partners like AWS, Hubspot, and legal assistance.
Finally, Gust Raise makes it simple to assess your business, acquire audit-proof values, cut legal costs, and locate the proper investors to support your new startup.
How does it Work?
Gust's web tools assist entrepreneurs in starting, running, and raising funds for their businesses, as well as providing transaction flow and relationship management for investors.
Recognize how you compare.
Request funding suggestions.
Submit an investment request
The pitching and funding process at Funded.com is easy. The site has an A+ rating from the Better Business Bureau and has been in operation for ten years.
The Funded Lender Match function connects pitches to the proper investors fast and effortlessly. When you sign up for the Basic plan, you'll get a complimentary executive summary of your business plan to help you with your pitch.
For a charge, you may also obtain a fully detailed business plan developed by Funded.
The basic plan is free for the first month, after which it costs $99 a month.
How does it Work?
Funded.com is a network that connects new and current businesses, initiatives, ideas, patents, and fundraising efforts with financial sources.
Get set with your ideas.
create a compelling pitch to send to potential investors
If they like it, they would reply.
Now, connect with the investor.
Expert Advice: Angel investors and venture capital networks are extremely interested in companies that have a good business strategy and realistic and attainable predictions. If a seed investor believes a certain product or technology developed by a group of founders to be disruptive in the marketplace, they will want to approach them to add to their investment profile.
The Envestors platform is a private network of investors and founders based in the United Kingdom. It enables startups to pitch their concepts and maybe raise funds for their businesses.
The FCA, the UK's regulatory body, has found Envestors to be compliant. It boasts a network of over 4,000 angel investors in the UK and has invested over £120 million in more than 200 potential firms over the years.
This network is equally welcoming to international entrepreneurs who may have a good high-growth business idea for the UK market. It also provides pertinent services in this regard. There are now 26 exits in the Investors network.
How does it Work?
It can assist you in putting up a winning investment proposal.
An investment professional will go through your story, predictions, and model and make advice on how to effectively present your investment opportunity.
Source- Semantic Scholar
The platform brings your deal to the attention of our experienced investors.
Your opportunity is listed on our website, where intelligent investors may pledge money, follow your progress, get updates, and ask questions. You interact with investors and keep track of their interests.
Please note that to complete your application, you will be transferred to their investing platform.
Expert Advice: When investors follow you, ask a question, or seek access to protected information, you'll get an alert. Post regular company updates to keep engaged investors interested. Track your progress and discover how many investors are interested in your transaction with your own statistics dashboard.
8. Golden Seeds
Golden Seeds addresses an issue that is sometimes ignored in the startup finance sector. Women handle around ten percent of venture money, and 13 percent of venture dollars go to firms with a woman on the team.
Female-only founders, on the other hand, get less than 3% of the pie.
Women founders or companies with at least one woman in a C-suite role are required by Golden Seeds, according to their investment criteria page.
Otherwise, things will continue as usual. The network comprises 285 angel investors and has invested over $140 million in more than 200 women-led businesses.
How does it Work?
First, sign up with your ID. A Golden Seeds event can be attended in one of two ways:
Observing a meeting is a terrific opportunity to learn more about Golden Seeds and how we invest. During an online event, you will have the opportunity to spend several hours with Golden Seeds members as they examine prospective investments.
Expert Advice: Golden Seeds invites submissions from women-led businesses in a variety of industries. Qualified businesses may be able to tap into the money of a countrywide network of over 300 investors, as well as the opportunity for venture fund investments. Entrepreneurs that get Golden Seeds funding may use the Golden Seeds network to help their businesses develop faster.
Through WeFunder's equity crowdfunding platform, over one million angel investors are paying it forward. WeFunder has matched 1,713 entrepreneurs with $370 million in funding since 2012.
Wefunder has been in the business for a long time and knows how to generate results, as evidenced by a detailed analytics website.
They've helped hardware entrepreneurs fund more than $9 million in total thus far. Wefunder allows you to raise anything from $20,000 to $50 million.
Startups do not have to pay anything upfront to begin their campaign.
Wefunder only charges startups who have had successful campaigns.
Their cost is 7.5 percent of the total fundraiser, and if you find a better offer elsewhere, they'll match it.
How does it Work?
Wefunder is a crowdfunding platform that links investors with businesses and companies with investors.
It has a $100 minimum deposit and fees that range from 2% to 3.5 percent, depending on how you pay.
Founders can begin soliciting cash for free, but they may be required to pay 7.5 percent of the total amount raised.