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Where do I find Angel Investors?

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Here?s some more good news: You probably already know angel investors or, at the minimum, they know you. Angel investors like to surround themselves with up-and-coming entrepreneurs and feel more comfortable working with people they already know and trust. Examine your own circle of business friends and associates before launching an exhaustive search. It helps to secure an introduction from a mutual friend, preferably one who?s already sunk money in your business. If you turn up empty-handed, begin your formal angel search with these four groups:

Universities. Many business schools with entrepreneurship curricula employ professors with connections to the business world. Call a local university and set up a meeting with the educator in charge of the entrepreneurship program to learn if he or she can provide you with names of investors who might take an interest in your endeavor.
Business incubators. Business incubators are the bricks-and-mortar facilities that support the development and operation of small, emerging businesses during the start-up phase when they?re most vulnerable. Many incubators offer formal or informal access to angel investors.
Venture capital clubs. Thanks in part to the technology boom of the past 20 years, many angel investors now co-mingle and form clubs that aggressively seek the next high-return deal.
Angel confederacies. So-called angel confederacies are informal bands of investors who share information. These individuals invest independently and in groups. Though harder to find, the pay-off may be worth your effort. Access to one member often puts you in touch with dozens of investors.

Here are some other simple ways to locate angel investors in your area:

Call your chamber of commerce?they are often affiliated with venture capital groups.
Speak with the director of a small-business development center near you.
Locate an accountant who manages entrepreneurial services.
Find an attorney who might point you to wealthy investors.
Locate a professional venture capitalist and ask if he or she has knowledge of angel groups in your industry.
Contact a regional or state economic development agency.
Contact the editors of business publications?it?s their job to keep their fingers on the pulse of entrepreneurial activity.
Peruse the Principle Shareholders section of companies? initial public offerings (IPO) prospectuses to learn who is swinging the big deals.
If you belong to a trade association, call the director and inquire about investors in your niche.
Speak with your banker. Ask who works with loans of $1 million or less. Small-business bankers often know of angel groups because companies that have received an equity investment are good candidates for a loan.

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