There are a number of different methodologies that you can use when you are looking for angel investors. As we discussed in a previous article, we mentioned that most people first start with a search for private investment on the internet. This is one of the best and least expensive ways for you to potentially fund your business. You can review a number of angel investment group websites, submit your business plan for review, and if a potential investor is interested then they will contact you directly in order to make a deal for a percentage sale of your business.

The second way to find an angel investor is to enroll yourself and your business in your local chamber of commerce. Here, you will be able to network with local wealthy business people that want to make investments into small businesses within their area. For many people, this is how they received the financing they needed in order to expand or develop a business.

 

The third way to locate a private funding source is that you can become a member of a number of trade organizations that are related to your industry. These trade associations usually have a number of events that are held on a regular basis. Here, you can network with people that have an interest in entering a new market. As such, they may want to provide you with capital in order to launch a business that relates to their organization.

The fourth way to locate an angel investor is to attend hosted events by companies that aggregate private funding source. These events are expensive, but they will put you directly in touch with potential investors that want to make small business investments. Usually, events that are focused on angel investors are held in major metropolitan areas. You can anticipate that the costs associated with attending one of these events will range from $500 to $5,000 depending on the level of interaction that you will have with potential outside funding sources.

 

Finally, the fifth way to find a private investor is to hire a capital introduction firm or private placement brokerage that will directly place capital with your business. However, these firms usually charge a fee that is equal to 6% to 10% of the total amount of capital that they secure on your behalf. You should make sure that any private placement brokerage that you work with is licensed by FINRA as well as the Securities and Exchange Commission.

 

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