Are you looking for a Christian angel investor?
If you have already raised money from your family and
friends but still need more money to catapult your business to more growth, a
Christian angel investor may be your best option. Banks are usually hesitant to lend funds to
companies with little revenue and few customers. And venture capital firms usually invest in
somewhat established companies with the potential for multimillion dollar
revenues. But if you need between
$10,000 and $1,000,000 angel investing should be seriously considered.
Finding an angel investor is a difficult but potentially
very rewarding task. To find a Christian
angel investor, you will probably need to put forth even greater effort.
Where to look
The primary method of finding Christian angel investors
is to use your personal connections.
Begin asking people in your church, Christian business associations, and
other Christian meetings for referrals to potential Christian angel
investors. Be sure to ask the referrer
for permission to use their name before doing so in conversation with the
potential investor.
Internet Resources
You can also visit www.goBIGnetwork.com to find Christian
angel investors. The Go BIG Network
connects investors, entrepreneurs, job seekers, advisors, and anyone else in
the startup community. When you purchase
a subscription, you can access the contact information for any Go BIG
member. In particular, you can browse
investors based on preferred investment amount, industry, region, and other
criteria. When you find a Christian
angel investor, you can contact them.
Alternatively, you can post a “Request” which allows you
to broadcast a brief advertisement to a targeted group of investors. If an investor is interested in your
business, they can contact you.
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Helpful Hint
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Finding Christian angel investors is largely a
numbers game. Once you have made contact
with a large number of investors, you will need to narrow them down by
location, preferred industry, typical amount invested, and funding stage.
You can start visiting local chambers of commerce, trade
associations, universities, business incubators, and small business development
centers to get a start in the right direction.
Local Christian professionals such as attorney, doctors, dentists,
bankers, and accountants may be able to help you as well.
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Pitching Christian angel
investors
Unless you know the angel investor well, you will
probably want to meet with them several times to get to know them better. Once you sense sufficient rapport has been established, it is
time to ask them for money. Here are a
few tips to increase your chances:
- In that meeting you must
communicate your business idea effectively. It should be simple
enough that your grandma could understand while also demonstrating your
thorough knowledge of the business. Your business plan should be
able to answer some of the questions like when and how your company will
become profitable.
- You should also be able to
note what skills you are lacking and what types of people you will need to
have. If you are just starting the business, you do not need to have
a large executive team already in place, but you do need to know what kind
of people you will need and when.
- Avoid inflating your
projections and ideas to the point they appear almost unbelievable.
Investors many times have been successful entrepreneurs and know that
linear projections never happen in the real world. You must
demonstrate that you have thought of a reasonable and almost comprehensive
plan to reach reasonable numbers.
- Remember that in the end,
investors want a financial return. You must show them a clear exit
strategy that allows them to make their desired return.
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Remember that raising money takes time. Be patient and stay persistent. In the meantime you can be developing a prototype or generating sales for your company. Investors love to see both, and traction for your business may cause them to come to you. Just be sure to find an investor well-suited to your specific needs.
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