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If you are an emerging company with the next fantastic product, at times you need an angel on your side.

A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - higher-net-worth people prepared to invest in entrepreneurial firms at an early stage - shelled out a lot more than $18 billion into early-stage businesses last year alone, compared to $304 million by venture capitalists.

Finding an angel investor, nonetheless, is not an straightforward task. Safer Smokes Inc. is 1 business that understands the challenge of attracting the appropriate investors.

This development-stage organization is tapping the smoking cessation market with a exclusive tobacco-free, nicotine-free of charge smoke referred to as Bravo, which has the look of a classic cigarette and burns like tobacco, but is truly made from lettuce fibers.

"Bravo lets you smoke your way out of the tobacco habit progressively," stated Puzant C. Torigian, chief executive officer of Safer Smokes.

For companies like Safer Smokes, it could be too soon to technique significant venture capital companies, however time to move beyond networking with loved ones and pals. Angel investors to the rescue.

"The challenge for raising capital in today's marketplace is in harnessing the courage and vision of the angel to see by means of to the real investment chance," said Torigian.

So how do firms like Safer Smokes attract their angel?

• Have a clear-cut target market for your item or service. For instance, Safer Smokes is targeting the smoking cessation market, which has sales approaching $ten billion per year, up from $6 billion just 3 years ago.

Most angel investors favor firms that are most likely to show good money flow within their very first 18 months, so possessing these kinds of statistics about your market place can be an incentive.

• Match the business plan objectives to the angel's threat tolerance. Investors want to know the item or service will be exclusive and effectively-cultivated. Safer Smokes has a patented answer that firm officials say will "affect the landscape of the health care business." company web site