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Angel Investor Connecticut

Why and how are angel investors useful and important? Who are they and how do you find them? How does a company in Connecticut profit from their use and what is the cost of using them? Angel investors can help a business in Connecticut get off the ground or they can help rescue businesses in financial trouble.
1. Local Companies
2. Angel Investors Overview
3. How to find Angel Investors
4. Why Use Angel Investors?
5. Featured Local Company

1. Local Companies

UNAPEN, Inc.
203-269-6111
2 Barnes Industrial Rd. South
Wallingford, CT
Hammond Kennedy Whitney & Co Inc
(860) 677-6939
37 Pembroke Hl
Farmington, CT
Maple Row Partners
(203) 854-5015
18 Marshall St
Norwalk, CT
Kramer Capitol Management
(203) 973-0555
750 Washington Blvd Ste 6
Stamford, CT
Townsend Frederick
(203) 879-2009
102 Wolcott Rd
Wolcott, CT
Assets Administration & Management Inc
(203) 322-9900
High Ridge Park
Stamford, CT
Herbert J Sims & Co Inc
(203) 418-9000
3530 Post Rd
Southport, CT
Abbey National Treasury Services
(203) 355-7900
400 Atlantic St
Stamford, CT
Zon Re-USA Llc
(203) 225-6278
Shelton, CT
River Capital Management Llc
(203) 661-5500
1 River Rd
Cos Cob, CT


2. Angel Investors Overview

Angel investors are a private source of investment money, which is usually used to help a promising company in Connecticut grow and meet their potential. The angels fulfill a need for capital that cannot be met by bank loans or the private means of the current owners. Sometimes they also offer consulting and management advice.

Angels offer a unique way for a business to raise capital without making money commitments of their own in the way of loans or getting new permanent partners.

These are not regulated investments as the SEC assumes the angels are sophisticated investors and do not need government protection. They have the knowledge and experience to do their own due diligence when making an investment decision.

This is a special area of finance that is not tapped by as many companies as it should be. Small companies in Connecticut could grow well beyond what the owners can imagine if they had the money and knowledge an angel or a group of angels could bring to the table.

Angel investors are typically private affluent investors who are interested in finding small companies that have a potential for significant growth. The company needs capital that is not available through other means. A private investor, angel, or person that had entrepreneurship desires would make funds available. These investments are made in lieu of a public offering. An angel investor takes on higher risk investments in hopes that the company becomes profitable and could be taken public or purchased This risk-reward potential limits who can be an angel as this money put up needs to be at risk money. Angels usually have sufficient risk funds that they can put up and take the chance that their investment will work or fail. The reasons they are called angels is they can provide money that would or may not be available in any other way. The company therefore calls them Angels.

Angels are also known to be capital providers for start up businesses in Connecticut who have a good idea, but no history with their idea. They are just providing capital for getting the business off the ground. These affluent capital providers are often people who made a large killing with a company they started and sold for a substantial amount of money. They may have been lucky to be a part of someone else’s company and gained a large stake due to options he may have owned. In any event, this type of investor has risk capital and is willing to take the opportunity to make money with a new company. This group of potential short-term investors is bright and no-nonsense businessmen with money to risk. If they like the odds of the business growing in a profitable way, they will make the investment.

3. How to find Angel Investors

In major financial centers in Connecticut bankers and brokers know angels or angel associations. There are also angel associations or companies listed on the Internet. These will come up if you put something like “private angel investors” in a search engine. After locating investors for angel financing, the next step is have a compelling proposal to show them or be prepared to give a verbal presentation to a group. Getting a chance to present your case is only the first step in acquiring angel investors. The presentation or proposal must excite their imagination and hook them into seeing the potential for the company in Connecticut. They must be convinced that your business plan for the future is possible with a good chance of working. They will ask questions they want the answers to or to see if you have thought of potential problems. Their feel for how well you have thought out your need for money will go a long way to getting them on your side. They need to see a potential for dramatic growth and a reasonable payoff for their investment.

If these elements are legitimately in your business plan, you have a chance of getting some interest. This is when the hard work begins. Remember they are trying to find a place to put their money that will show them a good return. It is critical that this part of the discussion is considered beforehand. Really well thought out answers should be on the tip of your tongue. Good reasons to expect future growth are a necessity if this deal is to be made. If new products or services are to be used to obtain this new growth, there must be some basis for this to happen. Why do you think it will happen and what are the odds of you being right. If another company is not covering this new area, this could provide the needed answers. But be prepared to answer why it is not being covered currently. If the investment is being used to hire new employees, justification of this expense must be presented and what kind of return could be expected.

The most important part of this presentation or proposal meeting is that preparation is paramount. Not being able to answer obvious questions is a severe negative. Analysis of the expansion and what will be needed will help with having the answers.

4. Why Use Angel Investors?

The reason a business should consider using angel investors is their investment does not have to be repaid like a bank loan. The private investors are temporarily buying a percentage of company. If the company grows and can be taken public, the angels will gain on their investment. If another larger company purchases the company, the angels will be cashed out at a profit. This is why the angels take the gamble on a good idea or good business prospects for a company. The business does not obligate its self to a loan that has to be repaid or any interest payments.

The money from the investment can be used to expand the business, buy needed equipment or hire special employees needed to help with growth. Many businesses are at this point in their business life and this input of capital can make the difference between being able to take the next step. Moving past this wall against future development is one of the valid reasons to find and use angels.

Another reason that raising capital through this method is the company or the owners cannot qualify for the loans needed to grow the company. This method also eliminates expenses that cannot be paid on a monthly basis and gives the business the freedom from restricting debt. If the company desires to grow and cannot get the capital needed this is a valid means of getting non-obligation capital until the business is taken public or sold.

Obtaining money from private investors or angels has the added advantage of gaining from their experience and prior business knowledge. They could also easily know people or businesses that could use your products or services. This may be one of the reasons that they came aboard with your company in Connecticut. Do not hesitate to use this new source of information if a deal is made. They may have solved the problems you have in another business. Use their experience and knowledge as they are now vested in your success.

5. Featured Local Company

UNAPEN, Inc.

203-269-6111
2 Barnes Industrial Rd. South
Wallingford, CT
www.unapen.com

Read more about Angel Investor

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- Angel Investor New Haven CT
- Angel Investor New London CT
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- Angel Investor North Haven CT
- Angel Investor Norwalk CT
- Angel Investor Norwich CT
- Angel Investor Old Saybrook CT
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- Angel Investor Rocky Hill CT
- Angel Investor Sandy Hook CT
- Angel Investor Seymour CT
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- Angel Investor Simsbury CT
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- Angel Investor South Windsor CT
- Angel Investor Southbury CT
- Angel Investor Southington CT
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- Angel Investor Tolland CT
- Angel Investor Torrington CT
- Angel Investor Trumbull CT
- Angel Investor Uncasville CT
- Angel Investor Vernon Rockville CT
- Angel Investor Wallingford CT
- Angel Investor Waterbury CT
- Angel Investor Waterford CT
- Angel Investor Watertown CT
- Angel Investor West Hartford CT
- Angel Investor West Haven CT
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- Angel Investor Willimantic CT
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