What Is a Directory of Angel Investors Used For?

The following article is written to answer the question, What is a Directory of Angels Used For? A directory of investors has a number of uses in addition to the primary purpose of putting angels in touch with young or expanding businesses.

  • Finding Investors: The most common use of the database is to secure investors for a business or start-up. Small businesses need financing and angel investors are willing to invest in companies with sound management and that have the potential to make a good return on investment. But small businesses and entrepreneurs often have trouble contacting potential investors which is where a database is extremely helpful.
  • Providing Services: Like any other group of private investors, there are various service providers who would like to contact angel investors for opportunities to work together. For example, a law firm may want to use the contact details to provide legal services. Likewise angel investors often hire accountants and an accounting firm may want contact details for angel investors.
  • Build recognition in the investing community: As a small business or entrepreneur, especially one in the technology sector, it’s helpful to build up recognition of your business to potential investors. Angels often invest in groups and they meet so while one angel you contact using the database may not be interested in the investment opportunity, he or she may be able to forward the investment opportunity to others.

I hope this has answered the question, What is a Directory of Angels Used For? As you can see there are other uses for a database besides simply cold-calling the contacts included in the directory.

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