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If you're an emerging company with the next excellent item, often you want an angel on your side. A study by the University of New Hampshire's Center for Venture Analysis showed that "angel investors" - high-net-worth men and women willing to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage organizations last year alone, compared to $304 million by venture capitalists. Finding an angel investor, nevertheless, is not an effortless process. Safer Smokes Inc. is 1 company that understands the challenge of attracting the proper investors. This improvement-stage organization is tapping the smoking cessation industry with a unique tobacco-cost-free, nicotine-free of charge smoke known as Bravo, which has the appearance of a standard cigarette and burns like tobacco, but is in fact made from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit steadily," stated Puzant C. Torigian, chief executive officer of Safer Smokes. For companies like Safer Smokes, it may possibly be also soon to approach big venture capital firms, but time to move beyond networking with family and buddies. Angel investors to the rescue. "The challenge for raising capital in today's industry is in harnessing the courage and vision of the angel to see through to the genuine investment opportunity," mentioned Torigian. So how do businesses like Safer Smokes attract their angel?

• Have a clear-cut target marketplace for your item or service. For example, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $10 billion per year, up from $6 billion just three years ago.

Most angel investors prefer companies that are most likely to show positive money flow within their very first 18 months, so having these kinds of statistics about your marketplace can be an incentive.

• Match the business plan objectives to the angel's danger tolerance. Investors want to know the item or service will be distinctive and nicely-cultivated. Safer Smokes has a patented answer that organization officials say will "have an effect on the landscape of the health care sector." setting up a business