When you should look for angel investors

I talk to entrepreneurs almost everyday.  Most live in Atlanta, some live in other places outside the Valley.

As an entrepreneur living outside the Valley, it’s important that you have the right mindset if you want to get angel investors in your venture.

First, you have to be real with yourself on whether or not should you should be looking for angel investors in the first place.

I found a great post written by David Cohen from back in 2006 that covers this topic.  The bottom line from the horse’s mouth is that:

If you’re going to go and ask any kind of professional (non-emotional) investor (angel or VC) to open up his checkbook, you had better be talking about building at least a $20M business. Fact.

Remember, that number is from 2006.  So in today’s terms you might want to up it a bit, (for the sake of argument) to a $50M business.

If your business is not going to hit that number in let’s say 2 to 5 years after you get your angel investment, then you are a great candidate for the bootstrappers club.

There are some other rants and nuances that provide more context on David’s blog.  Please go check it out here.

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