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Aus Salespoint

If you are an emerging firm with the subsequent great product, often you require an angel on your side. A study by the University of New Hampshire's Center for Venture Investigation showed that "angel investors" - high-net-worth individuals prepared to invest in entrepreneurial firms at an early stage - shelled out far more than $18 billion into early-stage organizations final year alone, compared to $304 million by venture capitalists. Finding an angel investor, even so, is not an straightforward job. Safer Smokes Inc. is one business that understands the challenge of attracting the proper investors. This improvement-stage firm is tapping the smoking cessation industry with a unique tobacco-totally free, nicotine-cost-free smoke known as Bravo, which has the appearance of a classic cigarette and burns like tobacco, but is truly produced 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 businesses like Safer Smokes, it might be too soon to method significant venture capital firms, but time to move beyond networking with household and pals. Angel investors to the rescue. "The challenge for raising capital in today's market place is in harnessing the courage and vision of the angel to see via to the true investment chance," stated Torigian. So how do firms like Safer Smokes attract their angel?

• Have a clear-cut target industry for your item or service. For instance, Safer Smokes is targeting the smoking cessation marketplace, which has sales approaching $10 billion per year, up from $6 billion just 3 years ago.

Most angel investors favor firms that are likely to show positive cash flow inside their initial 18 months, so having these types of statistics about your market place can be an incentive.

• Match the business plan objectives to the angel's risk tolerance. Investors want to know the product or service will be distinctive and nicely-cultivated. Safer Smokes has a patented remedy that business officials say will "affect the landscape of the well being care market." company formation