Will angels fund a true start-up?

PilotMitch

In all my recent Googling I`ve become a little confused over the definition of "startup". It seems that to a lot of people a startup has been in business for a few years, has a million dollars or so in revenue, a management team of half a dozen and a corporate box at Fenway!
My startup hasn`t started up yet. I have an idea, a business plan and a passion but other than that I`ve not got much more than a couple of pencils. Its a service business so I have no prototypes and it is, I believe, a unique idea so I can`t even point to an existing competitor as an example of what is possible. Assuming for the moment that my idea is good and my business plan basically sound, do angels invest in real startups?
Thanks for your help
MitchPilotMitch6/19/2009 4:47 AM

robertj

Mitch,
In the venture capital community, the term "startup" has come to mean the situation that Mark describes in his post. When an Angel Group or "professional" angel says they invest in Startups- that is what they mean.
For situations that are not that far along the path, it is rare that the "professional" angel will invest, so as an earlier stage business, you will probably need to find other avenues. There are a number of ways to bring capital into a business. The Optimum one for you will depend upon your specific circumstances.
If you`d like to discuss your situation (in confidence) send me a PM or contact me directly.
  

PilotMitch

Thanks for the tip. It looks really interesting but it seems from the FAQ that concept stage  companies will not be accepted. Although I may be getting into trouble with terms again - I assume `concept stage` is the same as `seed stage`.

suejenks

It is certainly very difficult to obtain any form of funding or investors unless a business has already got some sort of proven track record or that the business is generating at least some interest and already has what might be called "promises to purchase" or an order book filled.
Hoever all is not lost and just because you have no money there are plenty other things you can do to help get things up and running.
One company that I know of is making changes in the way people do business and promotes the need for a sustainable future. For young start up business who aim to be a sustainable business,charity,non-profit etc they will soon be in a position to offer a variety of grants...usually on a pound for pound match basis. The grants/financial support are for achieving various accreditations, training and educational courses and other things (which are currently being added to).
They also offer start up business that have developed a sustainable business plan the opportunity to generate an income with what they call a "Share Program"...
please email me [email protected] if you wish to find out more