How to find Angel Investors in Kenya
Almost every business needs some form of capital to kick off. While some people are capable of funding their startups, not everyone has the same ability. There are different kinds of financing for your business including borrowing from friends and family, loans or saving. However, depending on the size of the business and the opportunities for growth, entrepreneurs might consider other sources of funding like Angel Investing.
Angel investors are individuals who invest their money, not to be confused with money managers who invest other people’s money. Angels are well off individuals in different fields or successful business owners who can offer finance as well as expertise on different fields.
Angels are willing to take a risk on startups and unique ideas than lenders, venture capitalist and professional investors. The internet has eased up the process of searching for angel investors with many funding websites coming up every day such as Kenya Angel Investors.
The difference between Angel Investors and Venture Capitalists
While angels exist to offer seed financing to startups, venture capitalists rarely provide funding for startups and prefer becoming involved after the business has kicked off. Venture capitalists seldom use their money to fund business, they use institutional money to invest. Venture capitalists have the responsibility to invest in companies that will earn high rates of return, they can also be part of the board to ensure the company is going on the direction they see fit.
Angels put money in a venture that appeals to them personally. This doesn’t mean that they are ready to invest, however, this makes them an easy target to reach than venture capitalists since they are easy to research on. Venture capitalists on the other hand are a tougher crowd to capture, because they will invest more money than angel investors since their main aim is reaping more from their money.
Create a sales pitch about your business, the shorter the better since you do not have much time to convince them. Seek to capture their imagination immediately. Angel investors are more like mentors while venture capitalist function as the board of directors, both of them however will require you to give away part of the ownership (Equity) of your business.
Almost every business needs some form of capital to kick off. While some people are capable of funding their startups, not everyone has the same ability. There are different kinds of financing for your business including borrowing from friends and family, loans or saving. However, depending on the size of the business and the opportunities for growth, entrepreneurs might consider other sources of funding like Angel Investing.
Angel investors are individuals who invest their money, not to be confused with money managers who invest other people’s money. Angels are well off individuals in different fields or successful business owners who can offer finance as well as expertise on different fields.
Angels are willing to take a risk on startups and unique ideas than lenders, venture capitalist and professional investors. The internet has eased up the process of searching for angel investors with many funding websites coming up every day such as Angel Investment Network
So how do you find Angels willing to take a leap with your business?
Networking Events and Investors websites
Lenders are coming together and providing a platform for entrepreneurs and small-business owners to showcase their business or pitch their idea. Be on the lookout for such events happening around your area with an elevator pitch ready that shows the enthusiasm you have for your venture.
Angel Investors are mostly interested in the person behind the project, your drive, your decisiveness and innovation and how you are able to sell yourself and the project. There are different websites where small businesses can meet angel investors including Angel Capital Association, Angel Investors can join as an individual.
Angels are unconventional and some may not resonate with your idea, a rejection should not be interpreted to mean that your business is not viable or sustainable, they personal belief, interests and preferences may not agree with your new business.
While Angel Investors will take a risk on you, you are more likely to land a backer if you do not require a whole lot of money since essentially our idea is unproven hence uncertain. Angels tend to start small before pouring all their money into your business depending on how it is shaping up.
Tips for finding an Angel investor for your business.
What are you looking for?- The typical angel investor is over 40 years old, has a net worth in excess of 1 million with an income exceeding hundred thousand, has successful entrepreneur experience, can hold on the investment for not less than 3 years and has knowledge on your industry. Angel Investors search for companies with potential for growth, they may not mind waiting till their investment pays off but expect to be compensated handsomely for their risk.
The closer to home the better– Many angel investors are likely to play an active role in the business hence they prefer investing in businesses that are close to them.
Network, network and Network some more- Chances are you will meet your Angel investor through referral, for this to happen, you will need to build a good network. Be active in your local business and social scene, attend networking events and get your company name out there by meeting as any people as possible. Look out for business owners they might be angel investor you need or know one.
Angels rarely fly solo– There are many Angel who invest on their own, but the majority work as part of a group or network where they can pool their resources together, this in part means they share the risk.
Get your proposal to a wider audience– There are dozen websites providing a platform for angels to connect with small business owns looking for funding. They include Angel Investment Network
Angel investors are not just good for financial help, they come in handy with the know-how of certain industries which can be key in your business success.