Angel Investors Bring Big Ideas to Reality - Ratinah

Angel Investors Bring Big Ideas to Reality - If you're a new company with the next great product, sometimes you need an angel on your side.

Angel Investors Bring Big Ideas to Reality - Ratinah

A study by the University of New Hampshire's Center for Venture Research shows that “angel investors” – high net worth individuals who are willing to invest in entrepreneurial firms in the early stages – poured more than $18 billion into early-stage companies last year alone. , compared to $304 million by venture capitalists.

Finding angel investors, however, is not an easy task. Safer Smokes Inc. is one company that understands the challenges of attracting the right investors.

This development stage company is capitalizing on the smoking cessation market with a unique tobacco-free, nicotine-free smoke called Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is actually made from lettuce fibers.

"Bravo allows you to gradually quit smoking," says Puzant C. Torigian, chief executive of Safer Smokes.

For a company like Safer Smokes, it may be too soon to approach a large venture capital firm, but it's time to move off-line with family and friends. Angel investors to the rescue.

"The challenge for raising capital in today's markets is harnessing the courage and vision of an angel to see a real investment opportunity," Torigian said.

So how do companies like Safer Smokes attract their angels?

* Have a clear target market for your product or service. For example, Safer Smokes targets the cessation market, which sells close to $10 billion annually, up from $6 billion just three years ago.

Most angel investors prefer companies that tend to show positive cash flow in their first 18 months, so having these kinds of statistics about your market can be an incentive.

* Adjust business plan goals with angel risk tolerance. Investors want to know the product or service will be unique and well-cultivated. Safer Smokes has a patented solution that company officials say will "influence the landscape of the healthcare industry."

That's Angel Investors Bring Big Ideas to Reality - Ratinah


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