Lots of startups think they need to have connections to get angel funding. But that isn’t always the case. There are ways to network and give your startup a better chance to get funded even without powerful connections.
David Rose, author of “Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups” recently shared some insights with Forbes on the subject explaining:
“You’re much more likely to find angel investors through going to tech meetups and other kinds of conferences, and getting involved with people in this space.”
It’s a pretty simple concept. Angels who are looking for companies to invest in will likely head to events where there are entrepreneurs looking to meet them. That means that you as an entrepreneur should also be looking for these types of events.
Another method Rose said that angels use to find new companies is asking entrepreneurs they’ve already invested in. So by attending industry events or meetups, you’re not only putting yourself in a position to meet investors. You could also meet other entrepreneurs who could potentially connect you with investors in the future.
Or, if you already know other entrepreneurs in your industry, you could reach out to them to ask about their experience with investors. They might be willing to reach out to others on your behalf, or at the very least provide some advice. Rose said:
“The trick in many cases is to get to somebody who can introduce you to an angel. It’s not that it’s ‘who you know.’ It’s that having somebody reach out to you through some intermediary helps to provide the signaling [that you’re credible].”
So it seems that securing angel funding does have a bit to do with who you know. But you don’t have to be in the inner circle of investors just to start a company. There are plenty of ways to meet potential investors without any prior connections. You just have to put yourself in a situation to do it.
Rose shared a couple of other tips for entrepreneurs seeking to get angel funding. These include being willing to accept standard terms for deals and assembling a quality team of employees.
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