I have written extensively on the benefits of buying an angel investor database. In this article, I will instead tell you “Why You Should Not Buy an Angel Investor Database.” Of course, there are many benefits to buying a directory such as: gaining access to contact details for highly valuable investment contacts; saving time researching; developing relationships with investors you otherwise would not be able to contact. Those are just a few of the benefits. But an investor database may not be right for you or your business. Here are a couple reasons why you should not buy an angel investor database:

• Too expensive: Some angel directories cost more than $1000! For a small business or entrepreneur this is simply an impossible expense. Sure, finding an investment partner is essential for your business, but are you sure you can make this investment at the moment?
• Does not match your capital needs: It may be the case that your business needs more capital than an angel investor can commit to your business. If your needs exceed $100,000 you may want to consider a venture capitalist to partner with. These are larger professional investment firms that provide seed capital and money for expansion to small businesses that have proven they have the potential for a very profitable expansion.
• Business Based Abroad: If your business is based in a remote part of the world or really anywhere outside of the United States and the United Kingdom, you should be careful selecting a database. Many directories appeal primarily to U.S. and U.K. businesses and will be weighted with investors in the West. If your business is not in either country, you will have more trouble reaching interested partners and may waste money on a database that does not include investors near your business.