Wednesday, September 23, 2009

Where to find a business angel in South Africa

When looking for business finance, the term business angel is perhaps not as well known in South Africa as compared to the US, UK and Europe. Business angels who are often individuals who are well of from previous business success, may have strong industry links in specific business industries and come with plenty of experience, unsurprisingly really can be a great asset to a new business.

It comes as no surprise that in some countries, business angels are preferred partners for business finance and moral support. 'Wow that sounds like a great option for my business' you may be thinking at the moment, so where can I find a business angel?

Contacts with business angels are often made informally. You really need to be keeping a look out for these individuals where ever you are and may find the ideal person amongst:

  • Personal friends and family.

  • Wealthy business contacts.

  • Individuals known to your professional advisers (eg your accountant).

  • Major suppliers and clients of your business.

  • You may want to approach an angel networking organisation such as Investors Network.
    Many of the most active business angels use these services to find out about interesting investment opportunities.

  • You usually have to supply a credible business plan and financial forecasts as part of the registration process.

  • Once you are registered, the organisation passes information on to business angels. Typically, angels will attend presentation meetings (where you present your business to them) or receive bulletins.

  • In addition to the above you may also attempt to find Angel Finance through the business to business sections of various newspapers include advertisements from investors and from businesses looking for finance.

  • If you want to advertise your business, the advertisement will have to meet the newspaper's standards.

  • The benefits of angel finance is well known and although it may not be as straight forward as walking into your local bank to apply for funding, as a new business just starting out it will certainly be worth your while to get a business angel on board as soon as possible.

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