Succeed As Your Own Boss

ENDING SMALL BUSINESS FAILURE

  • Home
  • About
  • Book Melinda
  • Consulting
  • SBL Store
    • Books/Workbooks
    • LifePlanningJournal
    • 30 Day Fast Start Program
    • Become Your Own Boss Course
    • Become Your Own Boss Bundle
    • Fix Your Business Masterclass
    • Write A Business Plan Course
    • One-on-One VIP Coaching
  • Subscribe to Podcast
  • #Smallbizchat
    • Be a #SmallBizChat Guest
  • Blog
    • Write For Us
  • Contact
You are here: Home / Cash Flow & Finance / How to Look For Angel Investors If You Are a Female Founder

How to Look For Angel Investors If You Are a Female Founder

September 17, 2019 By Melinda Emerson Leave a Comment

Feel free to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Reddit
Reddit
Email this to someone
email
Print this page
Print

How to Look For Angel Investors If You Are a Female Founder - Social IG When I meet first-time entrepreneurs, almost every initial conversation eventually turns to “How and where do I look for angel investors”? This process is especially arduous for female founders. In 2018, Fortune magazine reported that only 2.2 percent of all venture capital funding in the U.S. went to companies founded solely by women, and another 10 percent went to companies with at least one female founder. So what do you do?

Approach # 1: Utilize Your Network.

The first approach is the one you already know, and that is obvious: go through your network. It’s the best option if you have it. Angel investors get inundated with cold emails and don’t open them. This is not a situation where the numbers game will eventually get you to the desired result. In fact, many investors firmly believe that if you can’t make an introduction happen, you can’t make a company happen.

Your course of action here is the following:

  1. Identify which investors fit your company’s objectives and which investing criteria you meet. This list is a great start to identify funds which invest specifically in female-led ventures.
  2. Explore Crunchbase or Fundery, the Essential Database for Women Entrepreneurs, to obtain information on their past investments.
  3. Secure business advisors for your company who can help you with strategy and connect you to possible investors.
  4. Use your network to get a warm introduction.

BUT what about all those people who DON’T have a network in the investing community, but DO have a brilliant idea and an MVP (minimum viable product) to go with it? Is there any hope for them to find capital, except the long route of going to events in your area focused on your sector, such as meet-ups, conferences, or other entrepreneurship-focused gatherings, where you can meet investors or advisors? 

Luckily, the answer is “YES.” In this article, I discuss six other approaches you can use in this case to connect with angel investors.

Approach # 2: Apply to an Accelerator.

Apply to an Accelerator

Accelerators are schools for entrepreneurs that help you either to develop your idea into a minimum viable product or to grow your business further in terms of validating your business model, getting traction, etc.

Very importantly, all accelerators end with a Demo Day where you have an opportunity to present your company in front of angel investors and raise capital. Even if you don’t end up closing on any financing then, you can still use the connections you made later, when you are ready for a funding round.

Check this database for a list of 400+ accelerators in the U.S. When you have to sift through the many accelerator programs offered, it is easy to get confused. With the criteria below, you’ll be empowered to decide which accelerator program is the best fit for your venture, Check out my 8 criteria before applying to an accelerator.

Criteria #1: Consider the program’s length and location. 

When you join an accelerator, you are usually expected to attend the program on-site. So, if the accelerator is in California, Texas or New York, you would have to move there and stay there until the end of the program. Consequently, depending on the program’s duration, you may need to make significant changes to your life and to incur living expenses to participate.

Criteria #2: The program’s structure. 

Not all accelerators are the same. Some have a marketing focus, some are more geared to product development, and some are just about providing access to funders. It is wise to choose the program that is the best fit for your venture.

Criteria #3: Check the program’s track record and years in existence. 

Getting into such famous accelerators as Y Combinator or ERA Accelerator is not possible for everyone. Thus, out of the ones that accept your early-stage startup, you should focus on those with the best track record and most years in existence. 

Criteria #4: Level of oversight. 

Some accelerators are more hands-off, and some are more hands-on. You should choose an accelerator that matches the level of oversight you are most comfortable with.

Criteria #5: Sector focus. 

Accelerators may have an industry focus which provides a more tailored experience for the participating startups. 

Criteria #6: The access to and the quality of mentors. 

You should find out what kind of mentors each program provides and how easily they are accessible. Ideally, mentors should be available on a weekly basis.

Criteria #7: Terms – $ Invested vs. % equity. 

Unfortunately, accelerator terms are typically non-negotiable. Therefore, you should review carefully what you are signing up for to make sure it’s worth it. 

Criteria #8: The number of companies funded after Demo Day. 

This is one of the most important criteria because getting funding is the main goal of the program.

Approach # 3: Enter a Pitch Competition.

Pitch competitions are another great option for those entrepreneurs who don’t have many investor connections. Just like on a Demo day, you get to present your business, but this time to a panel of judges who are all early-stage investors. Furthermore, a winner usually gets a prize which is either cash, services, or both. Startupalooza is a very popular New York pitch competition.

That said, generally, you should use pitch competitions not so much as a way to raise or win money, but to practice your pitch, get feedback on your value proposition, and meet angel investors – not only those on the panel but other attendees as well.

Finally, there are organizations, such as The Hatchery, which host matchmaking events between investors and founders.

Approach # 4: Use Crowdfunding.

crowdfunding

Crowdfunding has become a very popular way for founders to raise money. There are a number of crowdfunding platforms, such as SeedInvest or Gust, that give you easy access to large pools of accredited investors. However, you would have to pay a finder’s fee as a percentage of funds raised and sometimes give up additional equity if you choose to accept this form of financing. For example, SeedInvest charges 7.5% of funds raised and 5% of equity using the valuation of the financing round they are facilitating. 

If you have a consumer product or tackle a social issue, you can run your own crowdfunding campaign using sites like Kickstarter and Indiegogo. Those sites don’t attract accredited angel investors, and you would typically offer products and other perks as compensation, rather than equity. These sites also keep a percentage of funds raised. 

Approach # 5: Apply to an Angel Group.

You can apply to an angel group, such as New York Angels, or a female-focused group, such as  37 Angels.

After a review process and if selected, you will be given an opportunity to present directly to all their members at their Demo Day. Most angel groups meet monthly or bi-monthly. As the next step, a few selected companies would undergo a due diligence process, and 1-3 startups per investment cycle will get funded.  

Approach # 6: Apply for a Grant.

Finally, there are many grants designed specifically for women entrepreneurs. These grants serve as a launchpad for you to make the necessary progress to qualify for a bigger subsequent investment. 

The amount you can raise from such grants varies from a few hundred to tens of thousands of dollars. They also sometimes include additional perks such as workshops, networking, and the opportunity to pitch to industry influencers. Check out a list of top six business grants for women founders here. 

Approach #7: Certify as a Woman-Owned Business for Government and Corporate Contracts.

This approach is relevant for companies which may look to secure government contracts or work with larger businesses with strong diversity programs. Many government (federal, state, local) or corporate entities have preferences or specific allocations to work with minority or women-owned businesses. It can be a way to boost your cash flow which can be repurposed for business growth or put your company in a more attractive funding position. If you are providing products or services to such organizations, you may be able to more easily secure contracts, and you also may face less market competition. 

Victoaria Yampolsky - BIOAbout The Author: Victoria Yampolsky is the President and Founder of The Startup Station, a comprehensive resource for modeling and valuing early-stage ventures. We help founders build successful financially feasible businesses and get funded faster. Sign up to The Startup Station’s mailing list at the bottom of our Homepage and get a coupon to redeem for a FREE COPY of the Business Model Analysis Roadmap.

Feel free to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Reddit
Reddit
Email this to someone
email
Print this page
Print

Filed Under: Cash Flow & Finance, Starting A Small Business, Women in Business Tagged With: angel investor, crowfunding, funding, investment, small business owners, woman owned business, women entrepreneurs

Fix Your Business Now!

Order SmallBizLady's new book Fix Your Business, 90-Day plan to Get Back Your Life and Reduce Chaos in Your Business. It includes the 12 Ps of Running a Successful Business and readers will finish the book with a new strategic plan to take their business to the next level.

About Melinda Emerson

Melinda F. Emerson, known to many as SmallBizLady is one of America's leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. Her latest ebook, How To Become a Social Media Ninja; 101 Ways to Dominate Your Competition Online was released in 2012.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Let’s Connect

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Let me send my best blog posts to your inbox each week.

Click Here to Sign Up!

Get 2 FREE Chapters of SmallBizLady’s Book,
"Become Your Own Boss"!

Become Your Own Boss Download Two FREE Chapters

Most Popular Posts

>Seven Ways to be More Profitable in Your Small Business
> 7 Ways to Attract Customers to Your Small Business
> 6 Tips for Managing Small Business Finances
> How to Run a Successful Multilevel Marketing Business
> 10 Ways to Grow Your Small Business With Instagram
> How to Sell on Facebook
> How to Get Over the Fear of Starting a New Business

Featured Videos

“12 Principles of Highly Profitable Businesses with Melinda Emerson” from Sonia Dumas
October 2020

#SmallBizChat LIVE from NYC
May 2017

MSNBC Interview
Top Tip: Never Let a Customer Down

National Speakers Association
Winter Conference 2016

Tune in to Exhale, Wednesdays at 9 pm EST, only on ASPiRE. Join the conversation at #EXHALETV

Fox Business
Five Steps to Becoming a ‘Social Media Ninja

MSNBC
The importance of job mentoring for women

#SmallBizChat Live
National Small Business Week: Q&A

Good Day Philadelphia
Expert Shares Tips on How to Become Your Own Boss

Google
Best Practice for Social Media

Testimonials

Become Your Own Boss is a must read if you’re thinking of launching a business of your own.
Jean Chatzky, Bestselling Author of Money 911 and Financial Editor of NBC’s Today Show
Great step-by-step advice for anyone looking to start their own business.
Andrew C. Taylor, Chairman, Enterprise Rent-A-Car
Melinda Emerson has written a remarkable book. It is essential reading for anyone seeking to make the transition from working girl to successfully working it, as an entrepreneur.
Cynthia McClain-Hill, Past President, National Association of Women Business Owners
The perfect companion for those planning to go out on their own. Melinda delivers firsthand practical advice on how to be the successful entrepreneur. Read it if you want to get it right the first time.
Kenneth L. Shropshire, Professor at the Wharton School of Business, University of Pennsylvania
If you are looking for a versatile speaker who can talk about how to grow small businesses or get started with social media, look no further.
Heather Van Sickle Executive Director, National Association for Community College Entrepreneurship (NACCE)
Her wit and depth of subject knowledge were entertaining and empowering. Melinda is definitely on our short list of seasoned entrepreneurs and business leaders we look to invite back in the near future.
Tennille M. Robinson Senior content & Event producer for Inc. magazine
Melinda Emerson, “SmallBizLady,” is an engaging and witty speaker and a great addition to any conference. Her terrific presentation and compelling delivery give people the information they need and want to become their own bosses and grow success… Read more
Laurie Dalton White Conference Director, Pennsylvania Conference for Women
Melinda Emerson has been a fantastic small business and social media resource for the Pitney Bowes team. Not only is she personable and easy to work with, but she also has an innate understanding of the small business audience. My marketing programs … Read more
Justin Amendola, Former VP, Global SMB Digital Strategy, Pitney Bowes

SmallBizChat

  • Twitter

Latest #SmallBizChat

Getting Your Back Office Tight with Dee Taylor-Jolley 1200 x 1200

The SmallBizChat Podcast: Getting Your Back Office Tight with Dee Taylor-Jolley

  Dee Taylor-Jolley is the “Back Office Boss” and has been operating a successful business for over 30 years. Dee has worked as a high school teacher, corporate trainer, and congressional aide. She holds a BA in Political Science from Howard University and a Masters Degree in Curriculum Design from The Catholic University of America. […]

Recent Comments

  • Bada Business ibc on 5 Tips for Getting More Online Reviews for Your Small Business
  • Justin Marble on TikTok vs. Snapchat: Which One Is Better for Marketing? [Infographic]
  • sathya on 15 Mistakes Not To Make In Your Digital Marketing Approach
  • Agency Platform Ebrandz on TikTok vs. Snapchat: Which One Is Better for Marketing? [Infographic]
  • Sejal on 15 Mistakes Not To Make In Your Digital Marketing Approach

#SmallBizChat

  • SmallBizChat Archive
  • @SmallBizLady

Business Advice

  • How to Start

SmallBizLady Store

  • Products
  • Free Chapter

Get In Touch

  • Write For Us
  • FAQ
  • Be a #SmallBizChat Guest
  • Contact Us
Copyright © 2019
Quintessence Group
PO Box 280
Drexel Hill, PA 19026
(610) 352-0680
Privacy Policy · Refund Policy

Copyright © 2021 · News Pro Theme on Genesis Framework · WordPress · Log in