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If you're an emerging company with the subsequent wonderful item, often you need an angel on your side. A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth individuals prepared to invest in entrepreneurial organizations at an early stage - shelled out much more than $18 billion into early-stage organizations last year alone, compared to $304 million by venture capitalists. Locating an angel investor, nonetheless, is not an straightforward job. Safer Smokes Inc. is 1 firm that understands the challenge of attracting the right investors. This development-stage organization is tapping the smoking cessation industry with a unique tobacco-free of charge, nicotine-totally free smoke called Bravo, which has the look of a conventional cigarette and burns like tobacco, but is truly produced 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 companies like Safer Smokes, it might be too soon to strategy big venture capital firms, yet time to move beyond networking with family members and buddies. Angel investors to the rescue. "The challenge for raising capital in today's marketplace is in harnessing the courage and vision of the angel to see by means of to the actual investment opportunity," stated Torigian. So how do businesses like Safer Smokes attract their angel?

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

Most angel investors favor firms that are most likely to show positive money flow inside their first 18 months, so getting these types of statistics about your marketplace can be an incentive.

• Match the organization strategy objectives to the angel's risk tolerance. Investors want to know the product or service will be special and properly-cultivated. Safer Smokes has a patented answer that business officials say will "influence the landscape of the health care business." setting up a business