How to create your own angel investors?

How to create your own angel investors?

1. The reality: There aren’t many dedicated angel investors especially outside of Silicon Valley. Those who do angel invest are former founders/execs who get bombarded with deals and invest sporadically.

2. Here’s a proven strategy I learned from running a 200+ person angel syndicate from 2020 to 2023:

Key steps to building your angel prospects list:

– Identify experienced industry professionals
– Approach them directly about investing
– Target smaller check sizes ($1k-$10k)
– Aim for multiple angels to reach your goal

3. Critical success factors:

Target alignment:
– Mobile apps? Find mobile experts
– Hardware? Connect with hardware veterans
– Match investors to your specific market

4. What makes angels say yes:

– Clear use of funds
– Specific support needs
– Demonstrated progress
– Founder commitment (built something first)
– User validation

5. Pro tip: Use SPVs (Special Purpose Vehicles)

Benefits:
– Combine small checks efficiently
– Single cap table entry
– Streamlined communication
– Providers: AngelList, Odin, Carta

6. Remember: Most potential angels are busy executives. Make it easy for them:

– Keep pitches concise
– Show clear progress
– Demonstrate market understanding
– Make small check sizes acceptable

Bottom line: Don’t wait for angels to find you. Create them by approaching industry veterans with a compelling story and a reasonable ask.