5 great ways to find funding for your company

In the past, it was more difficult to find angel investors because most deals were regional. However, now that it is so much cheaper and easier to communicate nationally and internationally, angels are starting to look at investment opportunities further afield.  It’s also much easier for angels to find investment opportunities outside their own area thanks to the Internet, incubators, demo days, and blogs that cover the scene. The most important question for entrepreneurs looking for funding is “how and where can I find these investors?”.

Angel Associations and Networks

Most countries have a national association for angel investment groups (e.g. The US has the Angel Capital Association (https://www.angelcapitalassociation.org/) and the UK has the British Business Angels Association. The World Business Association lists some of them and you’ll be able to find more by searching the web.  Most of these organisations will be able to give you a list of angel networks, and maybe even someone to contact about your funding request.

LinkedIn

Through Linkedin you can even do targeted searches for angel investors (by name, keyword, region etc).  For example, Reid Hoffman (unsurprisingly since he’s the founder), Esther Dyson and Peter Thiel to name a few, are all members of Linkedin. However, as most angels and angel groups receive masses of messages daily, they probably don’t reply to everyone. Also, a lot of angels and angel groups don’t like receiving unsolicited emails through social media platforms and this tactic could be seen as the social media equivalent of “cold calling”. I’d suggest joining one of the many LinkedIn groups that focus on angel investing.  You can post an outline your investment opportunity and people can get in touch with you for more details if they like the look of it.

Twitter

It’s no great surprise that angel investors also use Twitter.  For example, Ron Conway, Chris Sacca and Jeff Clavier are all big Tweeters. Twitter offers a great channel to share information about your venture and to generate buzz. The aim is to get yourself noticed and build a brand that investors believe in and are interested in.

Websites

There are a few websites (like our very own!) that allow investors the opportunity to look at startups that need capital. These sites are probably the most targeted way to find funding, as your executive summary is promoted to hundreds of business angels at once.  You also don’t have to worry about sending unsolicited messages, as all the investor members on these networks are actively looking for investment opportunities.  Most of these sites have a national focus, but Angel Investment Network has 25,000 investors and 30 networks worldwide, so you can find angels from around the world.  At the top right corner of www.angelinvestmentnetwork.net, you’ll find a drop-down list with all our sites so you can find the one closest to you.

Incubators

Incubators and startup accelerators are becoming increasingly popular as a source of early-stage funding. Some examples include Techstars, 500 Startups and Y Combinator – the latter has funded over 300 startups since 2005. A further benefit is that they’ll also provide valuable advice, support and resources to drive your business forward.

I’d love to hear from anyone who has managed to raise capital.  How did you do it?

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News 

  • Private placements allow investors to participate in startups, but complaints are rising as small investors get burned: https://bit.ly/mKbj7c
  • A snapshot of which industries US angels have been investing since 2004: https://www.angelinvestmentnetwork.net
  • Venture investments up slightly in first quarter in the US: https://bit.ly/lnf6iv
  • Post on defining Angel, Super Angel & Micro-VC: Investor Nomenclature & the Venture Spiral: https://bit.ly/m7Oqzb
  • U expert sees growing investor interest in young companies: https://bit.ly/lUJl0O
  • An analysis of some well-known angels’ investment track record including Ron Conway, Reid Hoffman and Esther Dyson: https://buswk.co/i2HzMj

Business Plans & Pitching

  • Tips For Making Good Business Plans For Small Business: https://bit.ly/mPX1Qw
  • 5 Tips for Talking to Investors. Make sure your growing company gets the funding it needs by perfecting your pitch: https://bit.ly/jartON
  • Tailoring an Effective Elevator Pitch: https://bit.ly/maXGPo
  • Pitching to Venture Capitalists and Angel Investors: The Top Five Deal-Breakers: https://bit.ly/lGcDi2
  • 3 Trial Preparation Techniques to Boost Your Investor Pitch: https://bit.ly/klu7HN
  • Elevator Pitch Basics: https://bit.ly/lq0YyS

Fund Raising

  • Angel investors offer advice to entrepreneurs on raising money (audio): https://bo.st/kSvHg1
  • Tips from angel investor, Hemant Kanakia: https://bit.ly/m4z5gG
  • How to do market and competitor research that wins investment: https://bit.ly/m4iNaq
  • What Is The Ideal Seed Round Composition? https://bit.ly/lg77LL
  • 10 Questions Venture Capitalists and Angel Investors Are Going To Ask: https://bit.ly/myZ1iE

Marketing & Social Media

  • 14 nice things you can do for your customers using social media: https://bit.ly/jGLVyy
  • The 7 Social Media Marketing Essentials for Brands: https://bit.ly/k30bUV
  • Important PR Tips for Entrepreneurs: https://bit.ly/mqGcg0
  • Oops!: Five mistakes brands make when using social media: https://bit.ly/iSaOAd
  • 73 Essential Social Media & Tech Resources for Small Businesses: https://on.mash.to/myJG80
  • 3 Tips on Starting Your Business Blog: https://bit.ly/ldfoCh

Start-Up & Entrepreneurship

  • Entrepreneurship is source of job growth: https://bit.ly/mIatp4
  • Why entrepreneurs are dumping US; Start-up Visa may help: https://bit.ly/kDs3gC
  • Five More Tips for Starter Uppers: https://bit.ly/lwfdpl
  • 4 Ways to Decrease your Startup Costs: https://bit.ly/iyBntl
  • How to Pick the Perfect Name for Your Startup: https://bit.ly/lIE3UO
  • 3 Things That Make A Startup Work- Eric Kuhn of The Founder’s Card: https://bit.ly/je4cKH

To stay updated, come follow us on Twitter: https://twitter.com/angel__network.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Angel Investment Network’s Weekly Funding Roundup

A roundup of some of the recent seed-stage and angel deals from around the world:  

  • We’re delighted to announce that Blottr.com, a user generated news service created to empower anyone to break and make the news, has raised a £250,000 investment through Angel Investment Network
  • GridGlo, who provides applications & data collected from smart meters and other sources to utilities & software developers, has won $1.2m
  • MediaRoost has raised $500,000 in seed funding to build out the company’s enterprise Twitter Management tool, TweetRoost
  • Stealth eCommerce startup Inporia raises $1.25m pre-launch funding from Ron Conway, 500 Startups, Y Combinator & Start Fund, among others
  • Typesafe win $3m from Facebook & Google executives and Greylock Partners to commercialize an open-source computer programming language
  • Tap.Me, a mobile advertising start-up, has raised $1.4 million in Series A funding. The group of investors included Rockfish Brand Ventures
  • San Francisco-based Concurrent has raised $900,000 seed funding to help businesses process large data sets
  • Equipio – the social shopping website – has secured £100k of first round funding through a syndicate of London Business Angels investors
  • Claritics, a next-generation social intelligence company, has received $1.5 million Series A financing led by Cervin Ventures & TiE Angels
  • Figment, a site to share writing, connect with other readers and discover new stories & authors, wins $1m in funding from an angel investor
  • Outright.com, the easiest way for self-employed people to manage their bookkeeping, secures $ 2 million in seed funding
  • Energy management & storage startup VCharge has won $150,000 seed funding from the Slater Technology Fund, an early-stage state-backed fund
  • Resolve Therapeutics has raised $2 million Series A financing from New York-based venture firms New Science Ventures and Easton Capital.
  • TurningArt, a startup that aims bring a Netflix-like model to the art world, has secured $750,000 in seed funding led by NextView Ventures
  • NextSpace, who has developed an office where work-at-homers, entrepreneurs & freelancers can work productively, raises $625k angel funding

To get regular updates, come follow us on Twitter: https://twitter.com/angel__network.

Have you managed to raise capital for your company?  We always love to hear from entrepreneurs who manage to get funded.

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News 

  • Budget bonus for Australian SMEs: https://bit.ly/lUhbJK
  • Five Thoughts On Tech Angel Investing In India: https://bit.ly/iwXEGS
  • The Colorado House of Representatives passed House Bill 1045, also known as the “angel investor tax credit”, on Friday: https://bit.ly/iJiPHM
  • Start-ups find their progress stalled by “valley of death”. The gap in New Zealand’s capital markets needs addressing: https://bit.ly/ki4uYM
  • Angel Investment Tax Credit Proposed for Pennsylvania: https://bit.ly/jnG3qt
  • 5 Ways Federal Government Can Boost Entrepreneurship: https://bit.ly/l01rjF

Business Plans & Pitching

  • Harvard have put together a nice little tool that walks you through the process of writing an elevator pitch: https://bit.ly/mkDio5
  • Video: Women for Hire CEO Tory Johnson on the steps to writing a business plan for a small business: https://bit.ly/jQhC0K
  • Startup Business Plan – How an Investor will Evaluate your Plan: https://bit.ly/iXTgaL
  • 10 Rules For Writing a Powerful Executive Summary: https://bit.ly/kBAgzq

Fund Raising

  • New tax breaks for US investors will make it easier for you to raise money for your business: https://bit.ly/kd8nl3
  • Five Things Every Entrepreneur Should Know About Getting Funded: https://bit.ly/mhmAFi
  • Raising Capital for Your Startup: https://bit.ly/l5AOmf

Marketing & Social Media

  • Using Social Media To Establish Your Brand Online: https://bit.ly/jFmyF2
  • PR for a Startup Should Not Start With an Agency: https://bit.ly/kouuXi
  • 10 fantastic social media campaign videos you shouldn’t miss: https://tnw.co/kEXfUG
  • Different Types Of Sales and Marketing Headlines: https://bit.ly/kTD8bl
  • The Key Elements Of Internet Marketing Success: https://bit.ly/kUlEXv
  • 10 Catastrophic Marketing Mistakes and How To Avoid Making Them: https://bit.ly/iNgpfN
  • The Importance of SEO in Internet Marketing: https://bit.ly/jBxu40

Start-Up & Entrepreneurship

  • The keys to success in business: https://bit.ly/ieIh9X
  • How to Keep Your Startup From Acting Like a Big Company: https://bit.ly/jrhbP1
  • 10 Skills New Grads Must Have to Work at Startups: https://bit.ly/jWHOCw
  • 6 Business Startup Mistakes to Avoid: https://bit.ly/ksGLzm
  • What Angel Investors Don’t Want Entrepreneurs To Know: https://bit.ly/jb9E4N

To stay updated, come follow us on Twitter: https://twitter.com/angel__network.

Read anything interesting? Feel free to add links to any articles or resources you’d like to share with the angel community.

Angel Investment Network’s Weekly Funding Roundup

A roundup of some of the recent seed-stage and angel deals from around the world: 

  • NoiseToys, a developer of social media applications that include Hitmaker and Apptitude, has raised $1.2 million in seed funding
  • COLOURlovers (www.colourlovers.com), a startup whose products let you easily express yourself using shapes and colors, has raised $1 million
  • Gigwalk (www.gigwalk.com), who turn the world’s iPhones into an instant mobile workforce, has raised $1.7m in seed funding
  • graFighters, an online fighting game that allows users to create a character by uploading a hand drawn image, closes $200k seed funding
  • Mobile photo-sharing startup TuiTu wins angel funding from Wang Feng – former senior VP of Kingsoft and founder of game maker Linekong
  • SwaddleKeeper, whose Baby Sleep System offers a swaddling blanket system and infant blanket sleeper, has won $135,000 in angel funding
  • Group buying navigation website 1000tuan.com recently won investment of nearly CNY 10 million from well-known angel investor Xu Xiaoping.
  • Trustnode, whose interactive education platform eliminates the complexity of insurance education, has won funding from The Band of Angels
  • Innovatient Solutions raises $1m from the state and investors for its system to improve communications between care providers & patients.
  • Newtopia Inc has received seed funding from the Business Development Bank of Canada, which made the investment through its VC division
  • Mumbai Angels, a group of 120 investors, has invested in MVS Efarm, which provides logistic & consulting services to the agriculture sector
  • Discovery Bay Games has raised $12 million from angel investors to create a new class of iPad accessories
  • Semasio, a Hamburg, Germany-based online advertising technology company, has received €500K seed funding from High-Tech Gruenderfonds
  • Clipta Inc. (www.clipta.com), a Web video search start-up, has secured a $500,000 angel investment
  • Grubwithus, a startup aiming to bring strangers together for meals, has secured $1.6 million in funding
  • musiXmatch, the leading digital lyrics API, has raised $3.7m in Series A funding from leading investor Francesco Micheli Associati
  • Nevolution (www.nevolution.com), the developer of an app store for Windows mobile device users, has raised $450,000 in angel funding
  • Energy management and storage startup VCharge has won $150,000 in seed-stage funding from the Slater Technology Fund, an early-stage fund

To stay updated, come follow us on Twitter: https://twitter.com/angel__network.

Angel Investment Network’s Weekly Twitter Roundup

Angel Investment News

  • Irish Dragons Den star launches Angel Network initiative: https://bit.ly/jqC1wX
  • Illinois state investment tax credit garners interest, but no takers so far: https://bit.ly/k3XgRF
  • Startup America panel: Firms need capital, smarter regulations: https://bit.ly/liQ130
  • Why immigrant entrepreneurs are leaving the U.S. https://bit.ly/jaizvq
  • India Makes Exits Easier for Foreign Investors: https://bit.ly/jkwHMm

Business Plans & Pitching

  • Ten Ways to Optimize Your Investor Pitch Time: https://bit.ly/m1EF6q
  • 10 Business Plan Dos and Don’ts: https://bit.ly/kK3wzh
  • How to Perfect Your Venture Capital “Elevator Pitch”:https://bit.ly/mF3fF9
  • What Lenders and Angel Investors Look for in a Business Plan: https://bit.ly/iOvI97
  • How to refine your elevator pitch: https://bit.ly/iJPBN3
  • Creating an Early Stage Pitch Deck: https://bit.ly/i8waKS

Fund Raising

  • Business Angels – An Ingenious Way to Boost a Business Idea: https://bit.ly/kN508M
  • Have Insufficient Funds To Start Business? Acquire Them From Angel Investors: https://bit.ly/krrQCW
  • Five Things Every Entrepreneur Should Know About Angel Investors: https://bit.ly/lH2h08
  • Pursuing Angel Investors: What You Need to Know: https://bit.ly/mjyPo0
  • Six Tips on Taking Outside Investors: https://bit.ly/jMae2a

Marketing & Social Media

  • 10 Tips To Get Repeat Web Traffic: https://bit.ly/fSqM1f
  • Five Keys to Success in Social Media: https://bit.ly/kVZhtw
  • Four Ways Leading Companies Are Using Social Media: Lessons For Us All: https://bit.ly/lvrPTS
  • 5 Important SEO Tactics To Help You Build Ranking: https://bit.ly/kfDZfW
  • 6 steps to creating a social media strategy: https://bit.ly/lU8F4d
  • PR for a Startup Should Not Start With an Agency: https://bit.ly/kouuXi

Start-Up & Entrepreneurship

  • How to Be the Next Google: Keys to Start-Up Success: https://bit.ly/jg3Y3F
  • Successful Business Exit Strategies Important From The Very Start: https://bit.ly/l6cuZH
  • 5 key ingredients for startup success: https://bit.ly/kNwL5L
  • It’s So Hard To Say Goodbye: The Exit Strategy: https://bit.ly/mIfVX7
  • 10 Brilliant Startups That Failed Because They Were Ahead Of Their Time: https://bit.ly/ivBdME

To stay updated, come follow us on Twitter: https://twitter.com/angel__network

VCs invest 20% more funds into fewer deals

Investments are up while deals are down, according to a report from Dow Jones VentureSource, which found that venture capitalists invested $9.8 billion into 967 deals for companies around the world during the first quarter of 2011, representing a 20% increase in investment but a 7% decline in the number of deals from the same period in 2010. By comparison, in Q1 2010, companies around the world received $8.2 billion in venture capital across 1,038 deals.

Image source: DowJones.com