How To Find Angel Investors For Your Business in Nigeria
HOW TO FIND ANGEL INVESTORS FOR YOUR BUSINESS IN NIGERIA
How To Find Angel Investors For Your Business in Nigeria
Angel investors are heavy-pocketed and experienced business people who put in their money in businesses that has the tendency for high-growth in a stipulated period of time in exchange for equity. In other words, angel investors are wealthy people that invest in start-up businesses. They can also be called business financiers. In Nigeria for instance, we have lots of angel investors. Some of them are corporate companies, banks and cooperative societies and there are over 30 to 50 percent of them. More so, apart from the detectable investor community, there are lots more of them financing start-up businesses in Nigeria.
It will interest you to know that in spite of the somewhat large numbers of angel investors, so many start-up businesses haven’t been able to attract these financial bigwigs to actually finance their business. Perhaps, this could be attributed to some factors such as: proof of your potential success, lack of trust and integrity, you’re keeping perhaps some vital details about your business from the prospective investor, and finally, you don’t have a business model or plan. However, I will give you about 6 ways on how to find angel investors for that business of yours and how to get them to invest.
- Make sure your business fits the profile
One thing you ought to know is this, there are lots of start-up businesses that seek angel investors. So never think there are few or perhaps you are the only one. Thus, when finding angel investors to finance your business, have it in mind that you’re about the number 1000 in line seeking financial succor because according to surveys it is stipulated that only about 5 percent out of over 100 percent businesses who seek investors are successful. This is ridiculous right? I thought as much!
Now here is why you think, in fact we all think it is ridiculous. Start-up financing is really risky. Thus, angel investors look out to generating enough returns from their winning investments in order to counterbalance losers. To that end, angel investors as a matter of fact only seek to increase their investments 10 times of their outlaid capital.
Thus, if you are to attract any investor, your business must have a lip smacking growth potential.
- Your business must be ready and already operation.
I walked into one of the banks in my state to request for a loan to finance my boutique store. I was directed to go meet with the regional manager of the bank. I walked into his office, he offered me a sit and he asked me just two questions
- What’s your business model/plan?
- How long have your business been running?
Let us assume I never had a business model and the business was not already in operation, I would have sat there saying some mumbo-jumbo. Accordingly, do not ever think that any investor will consider financing your business when there is no model, plan and the business is not already in operation.
Investors basically invest in businesses that have an incredible track record that has met some certain targets. Thus, revenue generated from your business is of high significance.
- Source out Investors
Don’t just sit down there waiting, perhaps praying and thinking that investors will fall from heaven and finance your business. Because there are termed angel investors does not connote that they would be a cherub. More so, they are not manna so if you do not work your ass out and make strategic plans to establish good public relation with a prospective investor, you would see your business crumbling in no time. So you do not sit uptight and expect someone or a corporate entity to invest in your business. You have to source out your angel, go up to “heaven” and bring down your cherub! More so, link up with other entrepreneurs and find out from them how they were able to get/meet their financiers.
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- Network more
As aforementioned in 3. Link up more with other entrepreneurs. Not just those in your line of business but others that you know will help. Attend business seminars, summits and workshops because in doing so you could meet with people of your clime and prospective investors too. More so, build relationships with prospective investors. Meet up with them, send in your business proposals via emails and drop hard copies of the proposal and business plan with them at their offices. Do adequate follow to show your commitment.
That angel investor you are looking for could be in the business summit or conference you just reluctantly decided to attend. Conferences and summits draws in over hundreds of investors and CEOs. There is a high chance you could find what you need for your business in terms of funding and knowledge. So network more.
- Your business has to be realistic
Your business has to be realistic. You as the owner of the business need to be realistic too. Do not overvalue the worth of your business. If your business is valued at NGN100,000, let your prospective investor know that. Always make sure you keep record of your business finances because any prospective investor would most likely want to see your financial statement.
More so, make sure your business is well structured because that may as well make your business to not be attractive to any investor but help it get the needed funding it requires.
- Make use of online investment platform
Do not stay local, You need to go as extensive as possible. There are many online investment platforms that allow accredited investors the capacity to shop for the opportunity to back emerging businesses.
These platforms are but not limited to Gust, Angel Investment Network, Startupnigeria, and maybe the most well known which is AngelList. It all depends on where you choose to seek your investors and who you want to invest in your start-up. Some entrepreneurs prefer heavy-pocketed individuals while some would go for syndicate. It all depends on what you want.
Really this is not something you should be told. As an entrepreneur, you should make good use of social media, locate investors with the use of social media. Therefore, as an entrepreneur, looking for that angel investor to ditch out funds and invest in your start-up, you have got to consider the above “hows” on finding angel investors and getting them to actually invest in your business.
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