Find Leads on Angel or Venture Investors

Especially during tougher economic times, ventures looking for funding are more than curious about angel investors (an individual or group of investors who invest their own money in early-stage or startups, often in exchange for convertible debt or ownership equity) as well as the more traditional venture capitalists (who manage the pooled money of others in a professionally-managed fund).

But how do you find the right angels or VCs for your business? After all, individual investors and groups can be quite diverse as to their goals, interests and preferences (though you can be certain that either group investing in your business is going to require a high rate of return to compensate for the risk).

Luckily, there are several free resources available to help you start your search.

Angelsoft’s online search function allows you to search for both angel and venture fund leads through criteria you select, such as investment size, industry, type of funding group, and even the group location’s mileage from Austin.

Inc. magazine’s guide to angel investing also contains links for their Angel Investor Directory, organized by national and regional groups, as well as articles that range from do-it-yourself investing to knowing what an angel will expect.

Also, you may want to explore other funding sources, such as tech incubators, business plan competitions, banks or even friends and family. Used in concert and with the right plans in place, you might find that your need for capital is modest and more easily acquired through less elaborate means.

UK citizens or companies with strong UK-ties will want to also check with the National Endowment for Science Technology and the Arts (otherwise known as NESTA), which is an endowment in the United Kingdom that invests in early stage companies.

Any other suggestions? Share your advice in the comments.