1. Know who you're looking for.
The average angel investor is male, 49 years old, has a college
graduate degree, at least five years of investing experience in
private companies, and invests an average of $72,000 per
investment.

2. Look in your own backyard.
Most of the investments made by angels are close to where they
live. Networking is one of the most neglected and most effective
ways of finding angel investors. Join your chamber of commerce,
industry groups, software associations and other business groups
and then attend their meetings.

3. Angel investors give to charity but invest in businesses.
Angel money is not free money, it is not a grant, and it is not
an entitlement. Angels invest for a number of reasons, and one of
those reasons is to generate a handsome return on their money, the
average expectation is a 34% annual return.

4. Polish your presentation.
You only get one shot, make sure your presentation, both your
pitch and your business plan, is the best you can make it. Practice,
practice, practice.

5. Be realistic.
Being unrealistic is the most critical mistake entrepreneurs make in
their business plan according to angel investors. Be realistic in
the time needed to obtain financing, the amount of effort required,
and in determining the amount of capital required.

Dee Power is co-author with Brian Hill, "Attracting Capital from
Angels: How Their Money and Their Experience Can Help You Build a
Successful Company," 2002 and "Inside Secrets To Venture Capital,"
2001, both published by John Wiley & Sons. They can be reached
through her company's web site
http://www.capital-connection.com
mailto:business@capital-connection.com