Startup Spark

Hey startup! Paul Graham may have some $$ for you

by ShannonCherry on July 22nd, 2008

Paul Graham over at the Y Combinator recently posted some of the ideas he’d like to fund.

I often meet people who are looking to have their startup funded. But here’s the problem: venture capitalists and other angel investors do not fund startups.

Remember,  angel investors do more than open their pocketbooks. Many are entrepreneurs themselves, providing contacts, entrepreneurial insight and other helpful information to the people they invest in.

And notice I said people. Most angels don’t invest in an idea. After all, ideas are a dime a dozen. They invest in the person who has the idea.

Sounds great, but how do you find one of these angels?

• Matchmaker, make me a match!: There are several different websites online that you can sign up for that attempt to match up you and your business to an interested angel investor. They are based on the same concept as the online dating sites except you’re finding a professional, not a lover.
• Directory assistance: Many other sites offer a simple directory of known angel investors and angel investing groups. Just be sure to do your homework before you, and they, take the leap of faith.
• Research, Research, Research: Don’t just go trying to sell your idea to any angel investor whose name pops up. Learn about them, what they have invested in and what they are interested in investing in, or at least what types of fields. This way you will know if your idea stands a chance at being picked up by them or if it will end up in the trash.
• Network it: Angel investors usually know other investors or are part of a group of investors. If you meet with someone and agree that it would not work out, don’t be afraid of asking for referrals to people that investor thinks might be interested in your idea. The worst they can say is no, and the best thing that can happen is that they know someone who is a great match for your idea.

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POSTED IN: Business, Business Plans, Entrepreneurship, innovation