A d d u c e n t

Angel Investor Funding
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Even in good economic conditions conventional bank funding can be difficult to get unless you have strong credit, a business record for them to rely on, provide personal guarantees and collateral.  Current market and economic conditions are making things even more difficult for many business owners and entrepreneurs.

Without credit or collateral to get debt based funding, the only avenue you may have is to try to raise capital by selling equity. If your business plan is solid and the business a viable opportunity you may be able to find an "Angel" investor who would provide some funding for you. Angel investors can and do put money into small private businesses that are opportunities of interest to them but getting the attention of investors can be difficult.  Sometimes an indirect approach actually gets you better results than a direct one.

A little story to illustrate this is in order:

I read once about how Benjamin Franklin lined up funding for the Continental Congress to continue the Revolutionary War.  As the story goes, he managed to wangle several million dollars from France though he (and the Continental Congress) was not exactly in a position of power to bargain from.

Instead of fighting what would probably have been a losing battle (so to speak) dealing and discussing directly with the French decision makers (all men) ... instead, at parties he spent time with the women (the men's wives) and became quite a favorite with them.  His belief in his mission and purposeful need for the money resonated with them and circled back via the women to the men ... who agreed to loan the money needed.  An oblique approach that worked.

I have sometimes seen that same oblique approach work when finding seed money or a key angel investor for businesses.  If you have not read it yet, please read my article, The "Angels" Out There - Investors for Your Business; it touches on networking and making connections that you can talk to about your business.  It pays to "sow as many seeds" as you can and when you talk about your business, focus on your belief in the opportunities your venture holds. 

As Ben Franklin was wise enough to know, sometimes those that you talk to have the “ear” of a decision maker that might just become interested in your company and want to talk to you further about it.  So when you are speaking with people about your business or venture, speak with confidence, eloquence and belief in it and always in a professional way and manner.  You never know who may be “listening”.

Also see: Readers Comments & Thoughts on Raising Capital the Ben Franklin Way

http://www.adducent.tv/articles-news/134-reader-comments-and-thoughts-on-raising-capital-the-ben-franklin-way