Are you trying to find a New Jersey angel investor?

Despite the vast amount of information available on the internet, it remains a challenge to find angel investors in New Jersey.  Most angels get their deal flow through a network of friends and others they trust.  This lets them filter out bad deals more easily.  It also makes them more difficult to reach.  

Where can you find an angel investor from New Jersey?

A quick search on the internet yields several angel investor groups from New Jersey.  However, many times the chance of receiving funding from these groups is very low if you do not already know an angel in the group.  

Another option is www.Invstor.com.  The Invstor.com Network connects entrepreneurs, investors, advisors, job seekers, and everyone else in the startup community.  With a free membership you can create a profile with some information about yourself and your business.  This allows investors that are searching for entrepreneurs to see your idea and contact you if they are interested.

If you want to be more actively involved in contacting investors, you can purchase a subscription.  With a subscription you can obtain the contact information for all Go BIG members and use the search function to find investors suited to your particular needs. 

Finally, the most popular option is to post a “Request.”  A request is similar to a classified ad.  It gets shown to investors who are suited to companies such as yours.  This option lets you stay focused on building your business while the investors come to you.

Aside from the internet, networking is the primary way to attract a New Jersey angel investor.  Usually angels invest after the family and friends of the entrepreneur have provided funding but before venture capitalists are involved.  Simply ask your friends and colleagues if they know of any angel investors.  A referral from a trusted source means much more to an angel than a cold call. 

You could also try visiting your local chamber of commerce or industry meetings to meet new people and gather more information.  Sometimes contacts are made in unlikely situations.

Angel investor preferences in New Jersey

First, most angel investors see many more deals than they can possibly give serious consideration.  Thus they usually have several basic criteria for a deal to be given any consideration.  They like to invest close to home (usually within a radius of 100 miles).   Location is important because the investor wants to feel unhindered in his ability to communicate quickly and efficiently.

Second, investors usually prefer a specific range of investment.  They are using their own private money, and thus they are usually limited in how much they can invest. 

Third, a New Jersey angel investor will usually invest only in familiar industries.  Many times the angel has knowledge and contacts in their preferred industry of investment that they want to use actively.  Others are simply not comfortable with the high risk of a startup in an unfamiliar market space.

You will have a great chance of success when you find investors in your area in New Jersey that match your industry and your desired investment amount.  These investors will have plenty of further questions that still need to be answered as well. 

Questions all angel investors want answered

First, they will want to know when and why you need the money.  Your use of funds is crucial since it is their private money you are using.  In addition, a timeline for the money's use will show them you have thought in depth about exactly what you will do with the funding.

You should also think about what you are willing to give up in order to get the required amount of money in your timeframe.  If you are unwilling to compromise, you may risk letting your business cash flow dry up. 

Lastly, you should be clear about when and how you intend to give an angel investor the return.  Your exit strategy needs to be set firmly from the beginning because it will affect operational decisions later.  Once you address these questions, you will be well on your way to attracting angel capital.