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Guardian Angels

An angel group could be your startup's savior.

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This story appears in the July 2007 issue of Entrepreneur. Subscribe »

Question: I've talked to several VC firms about my idea for a new social networking website, but they all tell me that it's too "early stage." Is there anywhere else I can go to find investors who are willing to give me the money I need to start my company?

Answer: You might try approaching some angel groups with your idea. These organizations of high-net-worth individuals pool their personal funds to invest in young high-growth businesses that have the potential to generate outsized returns. Some angel groups meet casually for dinner once or twice a year; other groups are more formal and structured, gathering monthly to listen to and weigh in on company pitches and employ paid staff. Unlike investors in VC funds, who invest in all the firm's ventures, members of angel groups typically decide on a deal-by-deal basis whether or not to put money into a particular company.

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