Prabhdeep Singh, an ASU graduate research associate and CEO of Usuggest.com, recently won $20,000 from the Technology Entrepreneurship Challenge.
But he needs more to get his company going.
Singh is turning to angel investors to help fund Usuggest.com -- a Web site that allows shoppers to purchase products that have been recommended by other shoppers.
Angel investors not only help new businesses get started -- they also help boost local economies.
Angel networks, which are spread throughout the nation, are groups of individual investors who provide seed money for startup companies.
"We do need angel investors," Singh said. "That is how a typical company starts.
Thomas Duening, director of entrepreneurship programs at ASU, said angel investors are about making money, but they also help boost local economies.
In Arizona, there are two major angel networks, Arizona Angels in Scottsdale and the Desert Angels in Tucson.
"They are absolutely critical to an economy," Duening said. "They've got the money to help businesses grow."
Angel investors typically work with startup companies, but as the company grows and requires more money, venture capitalists come into play.
"Typically one of the best places for initial funding is friends and family," said Laura Lindsey, assistant finance professor at ASU. "If they don't have it, angel investors are a good place to look."
Reach the reporter at beth.cochran@asu.edu.
