In the realm of early-stage startups, angel investors shine as essential allies. They bring both crucial initial funding and the valuable expertise needed to kickstart companies. Unlike venture capitalists, who deploy pooled funds, angel investors personally invest their own resources and actively engage with the startups they back.
Because angel investors bring in not only wealth but also their vast experience, many startups look to them for guidance and mentorship. For this reason, it’s extremely crucial for early-stage startups to find the right angel investor who supports their goals and ideas.
But where do you find angel investors in Australia, and how do you determine who is the right fit for your startup? Read on for our guide.
What is an Angel Investor?
Angel investors are individuals who provide financial support or capital to various entrepreneurial ventures, most especially startups in the early stages of development. They provide this assistance in exchange for equity.
Compared to venture capitalists, who typically provide financial support when the startup is more established with a high growth potential, angel investors are more likely to invest in the company during the seed stage. In addition, they are seen by startups as assets.
As angel investors are often affluent and successful entrepreneurs themselves, they can share valuable information and knowledge with startup founders, providing major help to the company. They invest their time, resources, and skills to help the business succeed while maintaining a supporting role with less control and demand.
How to find Angel Investors?
If you’re a startup looking to bring angel investors on board, here are some places where you can find angel investors:
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Angel Investment Network
This website connects Australian entrepreneurs with angel investors worldwide to get the funds you need. After signing up, you’ll need to create a pitch for your business. Once approved, it will be listed on the site for prospective investors to browse and evaluate. If an investor likes your pitch, you will receive an email asking to connect. Once you get their contact details, it’s up to you to discuss, negotiate, and close the deal.
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AngelList Venture
AngelList is another online platform where startups can look for investors to partner with for funding. While it primarily caters to tech startups, it provides excellent reach and is a reliable avenue for sourcing angel investors.
To get started, you’ll need to build a personal profile and company profile to get listed in their directory. This will give your startup exposure and allow angel investors to look for you and reach out if they are interested in funding your business.
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Angel Capital Association
The Angel Capital Association is a group of accredited investors with members who invest individually or through other angel groups and platforms. Many of them are experienced entrepreneurs with high net worths who want to help lead early seed angel investment rounds. With over 14,000 angel investors in the association, it makes networking easy for future partnerships. You can find their directory of ACA member groups here.
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Gust
Gust is another reliable network with a directory of thousands of different startups and accredited angel investors. While the listing makes finding possible investors easier, as they need to be highly qualified to be listed in the directory, it’s still crucial to do your own research about these individuals before working with any of them. You can also opt to work directly with Gust, who can provide assistance in determining your best course of action to get funded.
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Social Media
You’ll be surprised to know that you can also connect with potential investors through social media. X, formerly known as Twitter, is known to have connected various startup founders with angel investors.
If you want to utilise your social platforms and attract investors, you’ll need to start being vocal about your company. Talk about your startup journey and document any updates. This will build an audience and make it easier for investors to find you.
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Networking
Attending various networking events is another way to meet potential investors for your startup. Not only will you connect in person, but you’ll also be able to pitch your business quickly and clearly. Research and look around in your local community and nearby cities for big events that can help grow your network.
Finding an angel investor is the first step to funding your startup. You’ll still have to pitch your ideas and hopefully enter into a partnership. Protect your startup and let Lazarus Legal help you deal with legal matters and requirements so you can focus on growing your company. Contact us today or sign up for our newsletter to stay informed about legal news, business trends, and more.