Fund Your Start-up, Part Two – Angels

If you have a scalable start-up business, you've done your homework and your funding from family and friends has peaked, you may be ready to approach an Angel Fund.  What's an Angel Fund?  Angel funds are local groups of investors who pool money to invest together, usually alongside extra investments from individual members.  These funds tend to invest locally and usually in exchange for convertible debt or ownership equity.

Angel funds provide much more than equity for start-ups.  Their members are experienced business men and women who can provide advice and counsel to your team. Angels  typically also place one of their members on your board, one who has specific skill and experience useful for your industry.  In addition, angels are very connected to resources you may need, like marketing, sales and finance as well as connections to other angel funds outside the area.  Two local angel funds currently operating are the Treasure Valley Angel Fund and Capital Cities Angel Fund.  Find out more about them at  boiseangelalliance.

Here is something new in angel funding...online angel funds.  AngelList is opening up funding channels founders never dreamed of even just a few short years ago.  It allows  entrepreneurs, advisors, and angel investors a digital network to follow startup activity and quickly jump into investment deals with new hot companies.  This can help you reach out beyond the local area to tap investors for your fund.  Fair warning, you won't get the experience and connections benefits available from the angel funds here in town (and thats important!).  But if you are looking for cash, you better check this out.

Financial Help for you Business?  See us at CFO Idaho.