At the Connecticut Venture Group meeting last week, Andy Hanson, who is an angel investor, told the audience that finding angel capital in Connecticut is not easy. To illustrate his point, he asked for a show of hands -- how many angels in the audience? 11. How many entrepreneurs? About 150. Andy mentioned three angel groups in CT -- CT Angel Guild, Angel Investor Forum, and Private Investors Network.
Angel investing, according to Andy, fills that gap between friends and family funding and venture capital. It's for early and seed stage investors. Typically, an angel will invest in a company with a product and at least one customer who has written a check. The business must be scalable; i.e., readily expandable/growable. The angels want to get at least 10 times their money back. That makes it hard for entrepreneurs to get funding.
For every 10 plans an angel reads, he or she will see 3 owners and fund 1 or 2 businesses. That's why having a great executive summary or one-page angel sheet is essential. To get money from the angel groups Andy is connected with, go to the Connecticut Venture Group and fill out their seed/early stage form. http://www.cvg.org/entrepreneurzone.asp
If you need advice about filling out these forms or improving your executive summary, please visit my website: www.upstartbusinessplanning.com or email me at: firstname.lastname@example.org.