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If you're an emerging firm with the subsequent great product, at times you require 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 individuals prepared to invest in entrepreneurial organizations at an early stage - shelled out far more than $18 billion into early-stage firms final year alone, compared to $304 million by venture capitalists. Obtaining an angel investor, nevertheless, is not an simple job. Safer Smokes Inc. is one organization that understands the challenge of attracting the proper investors. This improvement-stage firm is tapping the smoking cessation marketplace with a distinctive tobacco-cost-free, nicotine-cost-free smoke called Bravo, which has the appearance of a classic cigarette and burns like tobacco, but is truly created from lettuce fibers. "Bravo lets you smoke your way out of the tobacco habit progressively," said Puzant C. Torigian, chief executive officer of Safer Smokes. For businesses like Safer Smokes, it could be too soon to method significant venture capital firms, but time to move beyond networking with loved ones and pals. Angel investors to the rescue. "The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see through to the true investment opportunity," said Torigian. So how do businesses like Safer Smokes attract their angel?

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

Most angel investors prefer businesses that are likely to show positive cash flow inside their 1st 18 months, so getting these kinds of statistics about your industry can be an incentive.

• Match the business program objectives to the angel's threat tolerance. Investors want to know the product or service will be special and nicely-cultivated. Safer Smokes has a patented answer that firm officials say will "influence the landscape of the well being care market." company formation