How Do I Find Partners or Investors for My Business?
Keep in mind that it can be very difficult to obtain financing from these investors. But if you succeed, these relationships can be very helpful.
To find angel investors, consult with national and local directories. The Angel Capital Association offers a directory of its member groups that you can search by state. The Angel Capital Education Foundation has a listing of groups. They both provide direct links to angel investors' websites. Contact only those angel investors that have an investment strategy that supports your business model. Also note that angel investors usually do not invest more than $250,000 to $750,000. If you need additional capital to get started, venture-capital investors may be a better option. To find a detailed listing of those firms, visit the National Venture Capital Association's website.
If neither of these options are suitable for your situation, start exploring your own professional network, including any former business partners who may be interested in participating in the funding. The professional networking site LinkedIn can be a good resource for connecting with current and former business contacts.
Good luck with the venture, and let us know how it progresses.
Ryan Himmel, CPA and registered securities analyst, is the founder and CEO of BIDaWIZ.com, a professional network for small businesses and entrepreneurs to obtain trusted advice and services from a team of CPAs, Enrolled Agents, Financial Planners & Tax Attorneys. His team provides answers to the many finance and tax questions that small businesses encounter every day. Ryan has been quoted in The Wall Street Journal, Forbes, Fox Business and Crain's New York, among other publications. Ryan also regularly contributes to the community with his finance and tax blog.