Are you looking for an angel in the entertainment industry?  An investor? 

Entrepreneurs in the entertainment industry have a long list of needs, not the least of which is finding funding for their startups.  The process of raising funds can be confusing because it is complex. 

Is an angel investor right for your entertainment business?

Angel investing many times fills the gap between the initial family, fools, and friends round of financing and other institutional sources like banks or venture capital firms.  Banks are reluctant to finance early stage entertainment businesses with few customers and little revenue.  Venture capital firms usually require a company to be somewhat established with a huge growth potential and significant revenue in order to generate the returns they need.  An angel with experience in the entertainment industry may be just the investor necessary to take your company to the next level.  Though it is usually in the early stage of an entertainment business, an angel investor may invest at any particular stage. 

In the film industry, financing tends to be even more complicated.  Many times producers get funded through banks, studios, insurance companies or others after securing a pre-sale or other agreement.  An angel investor may provide funding to help you test your idea for viability.  However, the increased risk will require you to provide increased return.

The typical angel investor

An angel investor, (business angel in Europe) is usually a wealthy individual that invests his own private money in a company.  Many times they are successful exited entrepreneurs or retired businessmen.  They expect high returns (sometimes 25% annually) to offset the risk they assume.  This is especially true of an angel investor in an entertainment business.

Angel investors provide funding to entertainment businesses for varying reasons.  Some want to stay up to date on the latest developments in entertainment.  Others want to help businesses that are complements to their own.  Still others want to continue using the contacts and experience they have gained.  These angel investors provide the biggest benefit to your entertainment business.

Why does an angel invest? 

Angels typically have ample deal flow, and in order to filter businesses they use several criteria.  Most prefer to invest within 150 miles so that their contacts and advice can be used more easily.  They also generally invest within a specific investment range on each deal.  If you need more money than they usually provide, you may consider trying to form a syndicate of angels in order to get the entire amount.  Though most prefer early stage deals, some invest in seed stage entertainment businesses.  Because there are fewer of these investors and higher risk, it will be more difficult to find funding for a seed stage business.

Where can you find an angel investor in entertainment? 

The most common way to find an angel investor is through your personal contacts.  Begin asking the people you know if they would like to invest or know someone who might.  If you do not know anyone, you can visit your local chamber of commerce, local industry associations, and other entertainment industry groups to find new contacts.

Using The Invstor.com Network

Alternatively you can use the internet to look for investors.  The Invstor.com Network (www.Invstor.com) connects entrepreneurs, investors, job seekers, service providers, advisors, and anyone else in the startup community.  You can search for an angel investor by industry, preferred investment amount, and locations.

When you purchase a subscription, you can view the contact information for all Invstor.com members.  You can then contact every angel investor that would be a good fit for your business. 

If you would prefer an easier route, you can buy a “Request.”  This is a brief advertisement similar to a classified ad that gets sent to targeted investors.  If they are interested they will contact you.

Conclusion:  Finding an angel investor for your entertainment business may be just what you need to take your business to the next level.