Note: Running Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the Entrepreneur’s Playbook™ page of the PKF Texas website.
Many successful businesses like Disney, Proctor & Gamble and Texas based law firm, Phillips & Reiter, were all started during a lull in the economy. Recently traditional methods of financing have become more difficult to obtain, however, there are still options to consider, most notably angel investors.
Angel investors are high net-worth individuals who invest in entrepreneurial companies, usually at an early stage.
Rather than pulling back in the downturn, angel investors are adapting to it. By following more disciplined-than-usual investment strategies and spreading deals amongst multiple angels, they are often able to get more value for their money.
The cost of starting many types of companies is getting lower. Ventures firms have reduced their seed and early-stage investment, and the tough economic climate is pushing valuations down.
For those looking for angel investors in Houston and Texas, The Houston Angel Network is a great resource. It is a non-profit organization that provides its members a forum in which to efficiently evaluate promising early-stage investment opportunities. Its membership consists of active and SEC-accredited angel investors who share the goal of making informed, collaborative investments in promising early stage Texas-based companies.
Visit their website HoustonAngelNetwork.org for more information.