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Finding Angel Venture Capital in HonoluluWhile the firms in the past concentrated on building companies within their geographical area, firms and angel investors have gone international that they are now funding companies in some parts near the Pacific and even as far as Southeast Asia. That is why even if you reside in Honolulu, you can still find angel venture capital. Angel investors are basically the same as venture capital firms in that they help finance start-up companies. But the similarity ends there. Angel investors are wealthy individuals who are willing to invest personal funds, while firms are sometimes funded by other institutions. They may be composed of a few or more investors, depending on the amount that they contribute. Their investments usually range from a few thousand dollars to about $2 Million, committing to contribute specific amounts of investment every year rather than to give the amount in bulk at one time. Venture capital firms have higher investments because they can finance up to $10-20 Million. Firms usually focus on the fields of technology in their investment criteria, while angel investors are open to other industry sectors like software development, production and services. This means that if your proposal is innovative and not technology-related, then there is a bigger chance for you to raise angel venture capital than ordinary venture capital. While firms may finance companies in their later stages and also in their expansion, angel investors focus more on start-up companies, resulting in a more risky investment. Because of the higher risk, there is the necessity to yield a higher return, between 20-30%. That is why they are more careful in screening and choosing their investments. Members themselves help in the screening process. Presentations are done in their regular meetings, and it is during such time when they individually decide to invest or not. Application is often a multi-step process. What investors usually look for are companies with a potential growth of 1,000% in 5-7 years. If you seek angel venture capital, you must have a fully-developed product. Because capital is rather minimal, it must be spent in the actual production and marketing and not on product development or research. A unique, innovative product or service will greatly impress these investors. Also, show them that you have potential customers. Make a demonstration on how fast the business is most likely to grow. Lastly, find a strong, competent management team. This will give the investors confidence in your proposed company. Having rather smaller resources than most firms, these investors operate in networks. This is to share the risk among them. It is estimated that there are 225,000 angel investors and thousands of angel investor networks in the US, and still growing. This means that there are more angel investors than venture capital firms, which are approximately 600. With the many investors available, finding angel venture capital in Honolulu should not be a problem. Browse through websites, make a few searches. Some angel investors, although not based in Hawaii, do finance companies in this State. |
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