Imagine pitching a great idea to a person you are sharing an elevator with. Now imagine them offering to fund your prototype in exchange for a share of the profits.
You might be thinking this would solve all your funding problems! You might be right.
It's not crazy -- some high-net-worth individuals really do want to help your ideas succeed. Maybe they aren't "idea people" but they care about improving technology in a certain field. Maybe they are experienced developers who want to share expertise and funds without a cumbersome employment agreement and its obligations. Maybe they simply think the best way to make the most money on a new idea is to get in on the ground floor.
These are "angel investors," and it could happen to you. INC. Magazine has a handy guide to start your search to see if bringing in angel seed money is right for you, and where to find it. Contrast that with this recent Wall Street Journal article outlining changes in some states' tax incentives for angel investments.
While you are pitching, consider legal advice to ensure that you are protecting your confidential information in an intelligent and serious way. Once you have found someone willing to invest, structuring the arrangement definitely requires the assistance of legal counsel.
You didn't think it was going to be easy, did you?
You might be thinking this would solve all your funding problems! You might be right.
It's not crazy -- some high-net-worth individuals really do want to help your ideas succeed. Maybe they aren't "idea people" but they care about improving technology in a certain field. Maybe they are experienced developers who want to share expertise and funds without a cumbersome employment agreement and its obligations. Maybe they simply think the best way to make the most money on a new idea is to get in on the ground floor.
These are "angel investors," and it could happen to you. INC. Magazine has a handy guide to start your search to see if bringing in angel seed money is right for you, and where to find it. Contrast that with this recent Wall Street Journal article outlining changes in some states' tax incentives for angel investments.
While you are pitching, consider legal advice to ensure that you are protecting your confidential information in an intelligent and serious way. Once you have found someone willing to invest, structuring the arrangement definitely requires the assistance of legal counsel.
You didn't think it was going to be easy, did you?
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