Looking for angel investors for your custom MVP app? Keep reading for a list of angel investors for your startup, and our top tips for getting funded.
If you’re just starting out on your startup journey and are looking for funding to grow, why not call on an angel to help you out?
When you’re searching for someone to invest in your custom MVP app, an angel investor can offer you the money you need to move forward. Not only this, but they can help support you in your business goals too.
And remember, if you need to help developing your custom MVP app to increase the chances of getting funding, we’re here to help!
Table of Contents
- What is an angel investor for your startup?
- Well-known angel investors
- A list of angel investors for your custom MVP app
- Our top tips for getting angel investment for your MVP
What is an angel investor for your startup?
An angel investor is someone who invests their own money in a startup. Compare and contrast this to venture capitalists, who invest other people’s money into startups.
The amount of money offered by an angel investor can typically range between $10,000 to $250,000. Some angel investors can provide more, especially if they are in a group, which we’ll talk about shortly.
Angel investors are ideal if you are looking for seed funding to develop your business idea or launch your custom MVP app to new markets. Although if you’re looking for series A funding or higher, they may not be able to offer you the money you need.
In return for investment, angel investors will ask for equity in your company. The amount of equity they ask for depends on how much money they invest, the skillset they have, and how in demand they are. They may also ask for a seat on your board, although this isn’t as common as other types of investment like venture capital or private equity.
One of the significant benefits of angel investment is that many investors were once startup founders and business owners themselves. This means they understand your industry and the hard work it takes to run a startup. As a result, they can offer you valuable help and advice, as well as give you access to their professional networks.
As well as individual angel investors, there are also angel investment groups and syndicates. These are groups of angel investors that come together to collectively fund startups. An angel investment group can be a good option if you’re looking for more money for your startup, although there can be pitfalls, which we’ll look into at the end of this article.
Well-known list of angel investors
There are several well-known names in angel investment. Here are a few high-profile investors you might have heard of.
- Peter Thiel. Peter Thiel is one of the most successful angel investors in the world, having invested in Facebook, Airbnb, and Space X
- Marc Andreessen. Marc Andreessen is a founder of the successful venture capital firm Andreessen Horowitz, but is also well-known for investing in tech companies like Twitter
- Marc Cuban. Well-known for starring on the US investing show Shark Tank, Marc Cuban is a prolific angel investor, having invested in over 200 companies
- Jeff Bezos. You may not know it, but Amazon founder Jeff Bezos has invested in several startups, including Google and Uber
- Esther Dyson. Esther Dyson is well-known for investing in startups, especially in the health sector. Her investments include 23andMe, Evernote, and Flickr
- Gary Vaynerchuck. ‘Gary Vee’ as he is well known, isn’t just a thought leader in digital marketing, but is also an angel investor, funding startups including Shopify, Facebook, and Tumblr.
A list of angel investors for your custom MVP app
So we’ve looked at some of the most popular and well-known angel investors around. However, there are a lot of angel investors out there, with over 320,000 in Europe alone!
This means if you’re on the hunt for angel investment for your startup, your chances of finding the perfect investor are good.
While you may choose to contact some of the angel investors we mentioned above, there are a lot of investors looking for startups to fund. Angels come in all shapes and sizes, after all!
Here are some of the places you can find angel investment and funding, wherever you are in the world.
- Alliance of Angels. A collective of angel investors in the Pacific Northwest
- Alma Angels. This organization offers early startup funding for female entrepreneurs across all industries
- Angelmatch. This database contains over 90,000 investors, with contact details and links to social media profiles
- Angel Academe. This UK-based investor network invests in female-founded technology startups
- Angel Association. Angel Association offers seed funding for startups across New Zealand
- Angel Capital Association. Based in the US but with investors worldwide, ACA has over 14,000 registered angel investors
- Angel Investment Network. Based in the UK but open to businesses worldwide, the Angel Investment Network puts startup businesses in touch with prospective investors
- Angel’s Den. Europe’s largest fintech investment platform, Angel’s Den uses AI to match investors with startup businesses
- Archangels. Open to startups in Scotland, Archangels is an angel investment group for businesses in the technology or life sciences sector
- Band of Angels. This collective of angel investors is based in Silicon Valley and has invested over $400m in tech startups since 1994
- Business Angel Minority Association. This organization helps connect minority startup founders with support and investment
- European Business Angels Network. This platform helps connect startups across over 50 countries with the right funding
- Golden Seeds. A US-based investment group for women-led startups
- Green Angel Syndicate. This investor network specializes in startups that are dedicated to reducing the impact of climate change
- The Harvard Business School Alumni Angels Association. This global networking forum puts Harvard alums in touch with prospective startups to fund. You don’t need to have gone to Harvard to apply for investment
- Leapfunder. Based in Amsterdam, Leapfunder connects European angel investors and startups
- Life Science Angels. Based in San Francisco but offering angel investment across the US, this platform specializes in medicine and the life sciences
- NACO. NACO offers angel investment for startups in Canada
- Newable. Newable specializes in investing in deep tech, including AI and robotics
- Nexea. Nexea offers angel investment for tech businesses across South East Asia
- VentureSouth. Focusing on angel investment in the American South East, VentureSouth can invest up to $1m in startups
- Wefunder. Something a little different, Wefunder is an equity crowdfunding platform, meaning people can sign up for your startup idea and invest in return for equity – a little like Kickstarter. Bear in mind that Wefunder charges a 7.5% fee if your investment campaign is successful
If you’re looking for individual investors to reach out to, it’s worth looking at Crunchbase. This website provides a list of active investors, as well as upcoming networking events.
Our top tips for getting angel investment for your MVP
The big question… how do you increase the chances of angel investment for your startup? Here are some of the ways you can get a prospective investor’s attention.
Take it seriously
Angel investment is often seen as more casual and flexible than VC funding. However, you still need to take your funding efforts seriously. Investors want to work with founders that are dedicated and driven.
Investing in your own business where you able to is a fantastic way to show prospective investors that you believe in your custom MVP app.
Go for less, not more
It’s highly likely that you will need to work with multiple angel investors in order to get the funding you need. There are benefits to working with a few different investors; for example, you can take advantage of their collective experience and tap into their various professional networks.
However, working with a lot of angel investors can be counterproductive.
Let’s say that you have ten contacts in the list of angel investors at any one time. You’ll need to report to them all and answer all their questions and concerns. If there are decisions to be made, multiple investors can slow things down to a halt. Plus, there’s a risk that they could leak sensitive information to competing businesses.
It’s far better to work with a small handful of angel investors and take your time choosing the right ones for your startup.
Stand out from the crowd
High-profile angel investors can receive up to one thousand pitches a day! This means you need to make sure your bid for funding appeals to your prospective angel investor.
- Personalize your pitch. Don’t send a cut-and-paste message to several potential investors. Instead, take the time to research your investor and write a well-thought-out email. Your email doesn’t have to be long; Dhruv Gulati won an investment from Mark Cuban with a 114-word email!
- Do your research. Different angel investors will want to know different things about your business. Some will want to know everything about your finances, while others will want to see that you’ve got the right team in place. When you know this, you can prioritize the right content and stand out from other people vying for funding.
- Create a high-quality pitch deck. Your pitch deck should introduce potential investors to your startup, introduce them to your successes, and tell them what you’ll spend your funding on. If an investor likes what they see, you may be invited to present your pitch deck to them in person. Remember, if you need help making a fantastic pitch deck, we can help!
Do your due diligence
Angel investing is a lot less regulated than VC and private equity funding. This means it’s crucial to find an investor who is honest and has a solid track record. While most angel investors have the right intentions, some can do more harm to your business than good.
Don’t be afraid to do your research and ask questions. Look at a prospective investor’s past successes and failures. It’s also worth speaking to previous investees to understand their experiences. It’s important to get on with an investor, and founders that have previously worked with an angel investor can tell you if they’re easy or difficult to get on with.
Be wary of companies that will find you, investors,
There are a lot of companies that will find you, a list of angel investors, for either a monthly fee or a commission when you land an investment. Before engaging their services, look at what they want in return for bringing you leads.
It’s also worth bearing in mind that some angel investors look down on these services and will refuse to work with startups that use them. This is because they want to work with founders with the drive and commitment to do the hard work themselves.
While angel investment is one of the easiest ways to get capital for your startup, it’s important to remember that it’s not always a done deal. It’s estimated that you’ve got a one in five chance of getting funding.
Reach out to multiple angel investors, and if you get to the interview stage, always ask for feedback. Most angel investors will be happy to offer their thoughts, and you can use this to refine your pitching process moving forward.
We hope this guide has given you some inspiration when it comes to finding an angel investor for your startup. Do your research, create a high-quality pitch, and keep going until you get that all-important term sheet. Good luck!
FAQs about Angel Investors for Your Startup
An angel investor is someone who invests their own money in a startup, as opposed to venture capitalists who invest other people’s money. They typically offer funding ranging from $10,000 to $250,000, although some can provide more, especially when part of an investment group.
Angel investors are ideal for providing seed funding to develop your business idea or launch a custom MVP app. However, they may not typically offer the larger sums needed for Series A funding or beyond.
In exchange for their investment, angel investors usually ask for equity in your company. The amount of equity varies based on the investment amount, their expertise, and demand. They may also request a seat on your board, though it’s less common than other types of investment.
Angel investors often have startup experience and can provide valuable advice and access to professional networks. Their personal involvement can be a significant asset to your business.
Some notable angel investors include Peter Thiel, Marc Andreessen, Marc Cuban, Jeff Bezos, Esther Dyson, and Gary Vaynerchuck. These individuals have invested in successful startups like Facebook, Airbnb, and Twitter.
There are numerous ways to find angel investors, including angel investment groups, online platforms, and networking events. You can explore organizations like Alliance of Angels, Angel Investment Network, and many others listed in the article for potential investors.
To increase your chances of attracting angel investors, consider the following:
– Take your venture seriously and invest in it yourself if possible.
– Work with a small group of angel investors rather than many to streamline communication.
– Personalize your pitch and conduct thorough research on potential investors.
– Create a high-quality pitch deck to showcase your startup.
– Conduct due diligence on potential investors to ensure they have a solid track record.
– Be cautious of companies that offer to find investors for you in exchange for fees.
– Keep trying and reach out to multiple angel investors, seeking feedback for improvement.
Angel investment is competitive, with an estimated one in five startups receiving funding. Persistence, networking, and a compelling pitch are essential in improving your odds.