Six Ways to Attract A Business Angel

Are you getting ready to start a business, but you’re not sure how to raise the capital you need? Do you want to partner with a private investor, but you don’t know how to attract them to your business?

There are six key criteria a private investor, or business angel, looks at when deciding whether or not to invest in a business.

Your idea – do you have a great product or service? Is it marketable? Is it in a high-growth industry?

Your business plan – this needs to be as detailed and complete as possible. Include income and expense projections, marketing and advertising plans, organization charts and vision statements.

Commitment – are you 100% committed to your business? Are you willing to do whatever it takes to ensure success?

Flexibility – are you prepared to learn how to do things differently, or submit to a new way of thinking?

Funds – how much of your own funds are you putting into this venture? If none, it will look as though you are not confident enough, or committed enough.

Your Experience – have you owned a business before? Do you have a business degree? What special skills and talents are you contributing to the partnership?

An investor will look at each of the above 5 criteria, and then determine whether or not your business is a viable investment for them. The more details you can show them, the more likely they will be to favor your business.

Once you catch the attention of a business angel, and they decide to invest with you, they will most likely want part ownership and be involved in all major decisions. They will work with you on a daily basis, mentoring you and sharing their knowledge and skills. This is a wonderful opportunity for you to learn all you can from them.

Keep in mind that this is an investment for them, and they will expect a high rate of return. They understand that start up businesses are high risk, with a failure rate for them of about 30-50%. Make sure that your business is not a failure but the success that it was meant to be!

5 Reasons to Invest With a Business Angel

Starting your own business can be an exhilarating experience. It can also be nerve-wracking, especially if you are struggling to come up with starting capital. If you’re wondering who to turn to in order to get the funds you need to consider a business angel. These are individuals, usually entrepreneurs, who are looking to teach others how to run a successful business. They specifically invest in early-stage ventures and will help you realize your dreams.

Here are five reasons to invest with a business angel:

They are entrepreneurs themselves and they know what it takes to start and maintain a business.

They will forward you as much as $1 Million dollars for start up capital. This is enough to start almost anything.

They will work with you on a daily basis and help you with major decisions.

They will teach you everything they know. All of their knowledge and skills are yours for the taking.

They will give you access to their rolodex of business contacts.

Business angels can be an invaluable tool for you and your business. Not only will you get funds, but you will receive a steady stream of skills, knowledge and advice. The contacts they share with you could become the lifeblood of your business – future customers, clients and referrals. Get to know these people and network with them. This could be the most valuable thing you receive. They have spent years building these contacts. Treat them with respect.

No matter what industry you’ve chosen, there is someone who is willing to invest in you and your business. Keep in mind they will require a strong commitment from you and will want to see a complete business plan and strategies that you have for growth, income, etc.

Most will want partial ownership and will want a certain amount of involvement of day to day activities, as well as major decisions. Once they have achieved their ROI (return on investment) they will implement what’s called an exit strategy. This is done so they can take their profit, and you are left with a successful business and a wealth of knowledge.

Angel Investors ? Which One is Right for My Business?

Angel investors generally have differing areas of expertise, motives and personalities. You will have to do some research to find which one best fits your needs. Generally, angel investors can be grouped into three main categories:

1) Core: These are individuals who have built a successful business and have an extensive amount of experience. They have accumulated their wealth over the course of their business life and are very committed. They involve themselves with all areas and sectors of business, despite the investment risk, these angels are wonderful mentors and advisors.

2) Technology: These people invest in the latest technology trends. They don’t mind the high risk and enjoy the idea of bringing something new to the market. They may or may not want to be involved in the business on a daily basis and take a more hands off approach.

3) Return on Investment: They want a high return for their high risk on investments. The motivation here is all about how much they are going to profit from your business once it’s up and running. These guys usually stay away from investments when the market is poor. They also usually require an active involvement in the business that they’ve invested in.

You will want to meet with several investors to get a feel for which ones will be a good fit for you and your business. If you have a new invention that is high tech, you may want a technology angel. If you want someone to learn all the ins and outs of business management and start up, then a core angel may be a good fit. If you need someone to teach you the daily process of running a business, a return on investment angel may be best.

Investment angels come from all different sectors and backgrounds. Some are entrepreneurs, some are corporate executives, some are born wealthy, and some are simply investors who want a high rate of return. Know which type you want to partner up with before you seek them out. This will give you an idea of what they expect of you and ensure you get the start up capital you need.

Investing Capital in Ireland’s Business Economy

In recent years, many companies have chosen to expand into Ireland, citing a young workforce and a tax structure that many US based companies, including Google and IBM, have preferred to many other European locations. But there is also another reason why investors from the US and Europe have looked into Ireland’s young workforce, and going a step further, into Ireland’s own companies.

With per capita income amongst the highest in the world, many Irish residents have decided to follow up their ideas, and become entrepreneurs – either inventing new ideas or building start-up businesses of their own. However, in order to take it to the next level, many entrepreneurs will still need someone to accompany them on their journey. Friends, associates, and family may be one option, but it is also an option that may come with a personal liability. As a result, many Irish entrepreneurs are looking at alternative options and getting in touch with “angel investors” both within their country and abroad.

The capital we need to get started (such as “seed capital” or “venture capital“) is usually hard to generate. The business is not yet established and so cannot be approved for loans. One solution to this dilemma is the angel investment route. This is where entrepreneurs look for business funding courtesy of private investors that can run the business with you, providing the capital that can help start up the business in exchange for partial ownership.

Over the past few years, several angel investor groups have formed in Ireland, looking to maximise the growth within the country. In addition to that, websites like the Irish branch of the Angel Investment Network help connect Irish entrepreneurs with potential investors located around the world. Business partnerships and new start-up companies are evolving on a daily basis, and the Irish Investment Network’s database now has over 60,000 members worldwide, and includes hundreds of proposals from Irish entrepreneurs from this year alone.

OMGILI Obtains Seed Funding

Omgili Ltd. (www.omgili.com), an Israeli-based web search and research startup, announced today that it has obtained seed funding. The investors are Israeli-based venture capitalists Pitango Venture Capital.

Omgili is a web-based information services company. The company’s search and research services are based on advanced and proprietary discussion group search technologies. These services enable individuals, companies and institutions to effectively tap into the collective intelligence and experience of millions of people on the World Wide Web, and derive valuable information, knowledge, conclusions and insights.

The funding enables Omgili to upscale its search and storage

capabilities to the dimensions needed in order to cover the lion’s share of relevant online information on a daily basis, to pursue its plans to commercialize its technology and will take the company to a planned first round of funding.

 

“Omgili search is rapidly growing in popularity, which confirms our belief that people can really benefit from knowing what other people are saying. Omgili’s mission is to harness the infinite power of ‘many to many’ web communication platforms for the benefit of our customers,” said Ran Geva, CEO of Omgili Ltd. “User Generated Content is a vast sea of knowledge and experience that is now at everyone’s disposal.”

Omgili search is based on proprietary and patent protected search technology which allows it to identify online discussions and differentiate between discussion components like titles, topics, posts, replies and dates.

Geva adds, “Our advanced search capabilities will allow us to develop cutting edge marketing research tools that will allow marketers worldwide to actually listen to what their consumers are saying about their brands and products, in an unbiased and unsolicited environment.”

Rona Segev-Gal, General Partner at Pitango Venture Capital: “We found Omgili to be a technologically innovative company that’s bringing something genuinely new to the online search and research space. Omgili’s technology will enable marketing professionals to actually be connected to their consumers needs, in real time.”

Segev-Gal emphasized that the investment in Omgili is part of Pitango’s strategy to grant seed funding to companies at their very early stages.

About Omgili Ltd.
Omgili was founded in April 2007 by the entrepreneurs Ran Geva and Israel tzadok. The name Omgili is derived from the initials of the expression “Oh My God I Love It!” which is what the application developers think of it’s technology — The best way in the known universe to find out what people are saying about anything and everything.

Omgili is a vertical search engine that focuses on “many to many” user generated content platforms, such as, forums, Discussion groups, answer boards and others.

Omgili is a crawler based, vertical search engine that scans tens of millions of online discussions worldwide in hundreds of thousands of boards and forums, and is able to differentiate between discussion entities, such as title, topic, answer and post date.

Omgili is your way to find consumer opinions, debates, discussions, personal experiences, answers and solutions. Most of the questions have already been answered – find the answers through Omgili. Most of the technical problems have been solved — find the solutions through Omgili. Most of the experiences have already been described — Find these descriptions through Omgili.

Omgili is a company that believes in the power of discussion and in the benefit of listening. We are dedicated to promoting the online discussion and to making it work for the general good.

About Pitango Venture Capital www.pitango.com
Pitango Venture Capital has been investing in technology entrepreneurs since 1993. Pitango currently manages several venture funds totalling over $1 billion in committed capital invested in more than 100 companies. Pitango invests in high-growth companies in seed and early stages, supporting them as they grow. Pitango focuses on the IT/Communication sectors, as well as in Life Sciences, including Medical Devices and Biotech.