This is why this thread is necessary. Every inventor needs to know and consider investors.
I met many angel investors and a good number offered me funding which I turned down. They are generally very cheap. They want half of your life’s purpose for a 100G’s or so and they think they have done all of their job by putting up the money. My view may be dead wrong….someone tell me if I am.
I would gladly take an angel if they would take a seat in the executive office. COO, Director of Marketing, CEO even. I have the patents, they have the money, even contribution I think.
Most angels think they are the ****. They want you to mail them a check and and the most they have to do is open an envelope. There are exceptions and an angel may want to work and get involved. This is what I am trying to find.
Now what I did was smart. I said…hey…my invention is very important to a manufacturer. Why don’t they become the angel (of sort) If they want this product let them put something up.
That is what my manufacturer did. They also take care of half the work such as boxing up the product and shipping one by one which they do for no other product. Thing is, I don’t have to give any percentage of profits for this like I would an angel.
If you have a big product, your marketing research, and you are willing to join their team and pitch in some work you may be able to bypass investors like I did.
What I want for my other inventions is to find an exec that has a few bucks but his company has dissolved and now he is looking for another story; this is someone who wants to still work and be hands on. Maybe a small company that wants to add a whole new division and will put up a few bucks.
That’s just me, some people are happy with just the money from an angel, and yes they will offer some consultation sometimes, but anyone can be an angel investor by definition.
You could be in a bar and the bar owner could overhear your conversation and offer financing. He may know nothing but how to serve drinks and run a bar; but he would be called an angel investor.
For the record. Venture Capitalists are the next level in financing who generally only invest if the company is willing to have an IPO Initial public offering, go public, sell stock; and the company must be operational at a larger scale and strongly successful before they will look.
VC’s don’t fool around with small amount either. They want to invest at the very least 1 million. Small deals they have no time for.
Inventor of Handi-Straps