Growthink Reveals How to Find Angel Investors

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Growthink - a leading entrepreneurial consulting firm that has helped thousands of clients develop business plans - reveals the secret to finding angel investors.

Dave Lavinsky, co-founder and President of Growthink

Growthink - a leading entrepreneurial consulting firm that has helped thousands of clients develop business plans - reveals the secret to finding angel investors. Angel investors are those elusive, much sought-after individual investors with money for early-stage companies. And unlike marketing efforts for other business ventures, wide-ranging marketing efforts for securities and equity is forbidden by US law, bound by "General Solicitation" regulations. So how does an entrepreneur find that angel investor needed to get a company off the ground? Given the laws against "General Solicitation" what should an entrepreneur do? That answer is fairly simple - network.

Dave Lavinsky, co-founder of Growthink, says, "I do a lot of marketing. I market via my website. I market via social networks like Facebook and Twitter. And I market via more traditional means like public relations and direct mail. But when it comes to several of these marketing channels, there's one thing I NEVER market, and that's equity or securities. You see, while you can market products or services pretty much anywhere, in the United States there are many laws that the regulate the sale of securities, mainly the stock in your company that you may want to sell to individual or 'angel' investors."

An entrepreneur should never forget six degrees of separation - the idea that everyone is on average approximately six steps away, by way of introduction, from any other person on Earth, so that a chain of, "a friend of a friend" statements can be made to connect any two people in six steps or fewer.

Lavinsky elaborates, "I'm not saying that you should set your sights on Bill Gates or Donald Trump as an angel investor in your company and figure out the six or less connections you need to make to meet them. But rather, there are literally millions of successful entrepreneurs and business people all around you with the means, interest and ability to fund your company. These are the folks you should be trying to meet. You need to start by making a list of these individuals. But more important than just finding wealthy individuals to meet, create a list of people who could really help your business. For example, is there a top person in your industry whose credibility and/or connections could help you? Or is there someone you've come across who has amazing marketing or technical skills that would improve your company? It inevitably turns out that these same people generally have the means to invest in your company. And, if not, they generally have vast networks of contacts they can refer you to who might invest."

Finding angel investors this way gets an entrepreneur in touch with the "smart money." That is, investors who not only provide the funding needed, but who provide the expertise, guidance and connections to make a new company more successful. In finding "smart money" angel investors, an entrepreneur needs to think more like an executive recruiter or "headhunter" than a fundraiser.

Lavinsky outlines the following five key skills and qualities of a great executive recruiter that every entrepreneur should embody:

1. Identify the right candidates: a great recruiter can specify the ideal qualifications of and create a comprehensive list of potential candidates

2. Be outgoing: a great recruiter needs to get meetings with and speak with the right candidates; to do this, they can't be shy

3. Have good listening skills: a great recruiter needs to conduct interviews and really listen to the needs of their clients and candidates

4. Be well organized: a great recruiter needs to create a big list of candidates and methodically and repeatedly contact them until they get their desired results

5. Be persistent: a great recruiter follows up on great candidates; they don't let initial rejection deter them

Entrepreneurs hoping to reach angel investors are encouraged to visit Growthink's "Angel Funding Forumla" program to learn exactly how to find and contact angel investors, exactly what information to convey to them and how, and how to secure a financing check at: http://www.investorfundingformula.com

About Growthink

Growthink, Inc. is a leading provider of business planning services. Growthink has also developed several training products and tools for entrepreneurs, including its best-selling business plan template located at http://www.growthink.com/products/business-plan-template. To learn more about Growthink's products and services, call 800-506-5728.

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