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finding potential investors: online angel investment networks

Business processes have actually undergone a sea change. With liberalization and globalization, the world has opened up as a universal market place. We do not have specifically local concepts of doing business any more. The advent of the web world has played a significant role in blurring boundaries, and blending destinations into a single entity. This means that there are immense opportunities to be explored.

One needs to exploit the available opportunities to the fullest in order to make the most of the resources available. Reaching out to investors is no longer an issue. The internet and web based communication services have made it ridiculously simple. Making your presence felt has never been easier.

However, greater exposure would also mean increased competition. There is a huge arena out there, where you need to fight out to qualify for the best of resources available. The winning edge is to be exhibited at all times. Apart from the common web communication tools, the internet has been exploited for setting up various networking platforms.

The concept of online angel investment networks is one such platform which has proved to be highly relevant for business entrepreneurs in tracking down potential investors.

Online angel investment networks act as confluence points for investors and fund seeking entrepreneurs. Fund raisers are given a solid opportunity of pitching their ideas across the table, so that multiple angel investors can access it at one time.

Angel investors are highly accomplished business professionals themselves. They have had their own achievements in their respective fields and have in-depth knowledge of business processes. They understand the way businesses work like no other, and are especially interested in funding small time business ventures in exchange of equity shares. Not only do they provide financial assistance, they are also known for their complete involvement and guidance. Once they become part of your venture, they see you through all the vital proceedings involved in running a business house. Primarily, angel investors associate with an organization in exchange of equities.

Although you might be able to convince them for common stocks at the outset, eventually they will be demanding the coveted preferred stocks of you company. Therefore, before targeting angels you should be mentally prepared to include them in major decision making processes and financial decisions.

To start with every online angel investment network that you target should be able to tell you how many investors they have in board, where they have come from and what are their specific profiles. Once you get the answers of these basic questions, you will know whether this online angel investment network can actually provide you an access to the type of investors you are looking at.

Also, the number of investors will define your reach. It is also wise to enquire about the established track record of the online angel investment network, you are planning to join.

Asking questions like how many investors it has worked for and how many successful completions it has facilitated, will give you a fair idea of its past performance track record.

Ask them for specific numbers pertaining to the total fund amount that they have helped to raise last year and what is the average deal size for fund raising. Asking such questions will clarify if this online angel investment network works in your desired segment or not. It may happen that you are looking for substantial funds and the particular online angel investment network specializes in limited funding.

In such cases, being a part of such an online angel investment network may not be a wise thing to do. You also need to find out, what percentage of investors on board are actually interested in the particular segment, you hail from. If there are too few, your target audience automatically dwindles.

The stage, at which your business is, bears extreme relevance as well. The goal might be to fund your start-up. However, majority of investors associated with a particular online angel investment network might only be interested in funding for the expansion of already established companies. In such cases too, registering with the online angel investment network, would be nothing but fruitless.