Angels look for a clearly identifiable niche with a large market potential, a competitive advantage and, ideally, a product or process that can be protected with a patent. Angels want your money to be on the line, too, and because in the end they tend to invest in people, they want to see that you have a passion for the business. They hoped to start as an online exchange for used college textbooks and eventually become a link for customers of local grocery stores and other merchants. R. Clayton McWhorter of Nashville was intrigued and asked the Keens to present their business plan to Clayton Associates, his private investment group. It didn't hurt that McWhorter was a fellow alumnus of Samford University, in Birmingham.
Angels often expect to cash out after five to seven years.
Tell as many people as you can, including your suppliers, bankers, lawyers and accountants, that you are looking for funds. To find an angel, mine the resources in Where Angels Tread . Del. Show up regularly wherever angels meet. Ninety-nine times you'll get a no. So budget for 100.