Positioning your company to attract angel investors is the key. At a seminar hosted by the Rocky Mountain Internet Users Group, Marcia Schirmer of Colorado Capital Alliance Inc., an angel network that provides confidential connections between investors and high-growth companies, laid out some ground rules. They are interested in all growth stages of ventures. 18 of 20 investments don't produce a positive return. Internet-based companies are now one of the hottest areas of interest.
Entrepreneurs seeking funding include service, telecom, computer, Internet, and manufacturing firms.
The size of the equity stakes they take depends on perceived risk of the investment. A common thread running through deals is investor confidence in the founder of the venture and gut instinct. Internet companies are hot in the investor community with more experienced investors now funding these ventures, but less seasoned investors continue to invest as well. The key issue for entrepreneurs is preparation. Don't present valuations of your venture that are sky high.