If an individual has a unique idea for a new business venture, then the opportunity to obtain funding from angel investors can allow them to take their new business idea to the next level. While there are many individual investors to choose from, there are also many national and local groups of angel investors available.

Angel networks
Each angel network operates in a slightly different manner. For example, some angel investors may charge an immediate fee for consideration of an application, while others may not even request such a cost until the prospective applicant is approved. There are some angel investor groups with websites that encourage the applicant to fill-out an online application form, while other groups may accept a written funding request through direct mail. While the process can be extremely competitive, all angel investor groups often have an extensive screening process to ensure their investment is legitimate and shows promise of profitability in the years to come. Entrepreneurs must be patient during this time; however, those who do not want to go through such a screening procedure should exhaust other monetary avenues (personal savings, money from family and friends, bank loans etc.) Often times, other sources of funding may only provide a portion of what angel investors can offer.

Angel network distribution
There are several websites that can help individuals find networks of angel investors. These lists are usually compiled according to geographic location. Listings are divided into eight regions including the Pacific Northwest, Southwest, Mid-Atlantic, Northeast, North Central, California, South, and Midwest. There is also a category for those groups that may consider investments located anywhere in the country.

Key components that appeal to angel investors
When approaching angel investors for startup capital, entrepreneurs should have a well-rehearsed pitch along with a detailed business plan. Angel investors, unlike family members and friends, always request a complete business plan because it gives them an idea of what the prospective company and its products and services are all about. Technology companies that seek angel capital are encouraged to have a working prototype of their business idea, as well as feedback from consumers who tested the trial product. Business owners should also provide their angel group with references from their previous clients because they can provide valuable insight into the work ethic and credibility of company founders.

Insider support
Angel investors usually form networks of people so they can cumulatively invest large amounts of money in a given investment project. They typically make their business decisions based on the response of membership votes; therefore, it is an added advantage for an entrepreneur to have at least one ally among the group. One way in which business owners can win over a member of an angel group is through group member research. They should read the biographies of all members of the network and try to earn the confidence of an angel member. By winning over a member in a group of angel investors, business owners stand a higher chance of earning capital for their project.

Angel network market sector
During the research process, the entrepreneur can also find out the interests of the prospective angel network. This can be determined by reading about the previous projects the investors have funded. Some networks stay within a specific industry, while others have a more diverse portfolio to their name. For example, some angel investor groups primarily fund technology-based companies, while other networks invest in a wide range of companies, including biotechnology companies and restaurant franchises. Therefore, the choice of an investment for an angel investor greatly depends on the overall interest of the group.

Benefits of angel groups
Finding an angel investor group for startup funding can be a tedious process; however, the overall advantages of successfully obtaining angel capital can certainly outweigh any drawbacks encountered during the process. One benefit of attaining angel capital is that the angel investors often play an advisory role in their invested company; they can guide the new business owners during the early stages of entrepreneurship. Their experience also enables them to diligently address issues that may occur among management and staff within the company.

In addition to their wisdom and enthusiasm in helping a new company move forward, an angel group investment in a new company can stimulate local economic growth by offering employment opportunities to prospective job seekers. They are also often involved in a plethora of community-related sponsorships, further uniting local communities and causes. Another major advantage of obtaining the financial support of an angel group is the opportunity for the new business owner to focus all of his/her energy in building a business rather than being overwhelmed with expensive monthly repayment costs other loans require. In addition, the financial investment can also lead to a solid relationship between the investor(s) and entrepreneurs since involvement often entails several years until the exit.

Conclusion
Angel networks are located just about everywhere. While each group may have different requirements, all have a similar extensive screening process. It is always an advantage for an entrepreneur to have the support of one member of the angel group since the decision to invest primarily entails membership votes. Entrepreneurs can certainly build relationships with members of the group by researching their background and areas of investment. The benefit of angel capital is the experience and skills angel investors bring to a new company, their passion for the job and community, and flexible agreement terms for the new business owner.

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