Angel Investors

Angel Investors are usually affluent business people who are interested in utilizing their wealth to help worthy start-ups. In exchange for cash, they take an equity stake in your business, meaning they own a percentage of your company. When accepting ownership equity in the company, the investor can take on an indirect role, become a silent partner, or become a long-term part owner. Angel investors usually help entrepreneurs in the start-up phase of their business. They typically not only bring in the cash, but the business acumen as well. They like to mentor and really assist the business owner in getting the business up and running. Angel investors typically operate alone or in small groups unlike investing companies. These investors are easy to find, but difficult to persuade. Angels invest in companies that they are drawn to, through emotional connections, community association, or a desire to vertically integrate other products or companies that they are involved in. Make no mistake however, Angel Investors are just as interested in their return on investment as the next investor, so make sure you have a solid business plan, a stellar prototype of your product if applicable and properly demonstrate how it can be profitable for them.

Pro:
One of the most rewarding aspects of angel investing is the ability to receive mentoring from a successful entrepreneur; this includes networks, knowledge and experience. This is a great resource to raise small or large amounts of money, since the investor has their own personal wealth that they can invest in your company quickly. Angel investors are in almost every industry as well.
 
Con:
Angel investing doesn’t guarantee that your business will be successful. Additionally, the angel investor will, in turn, own a piece of your company depending on the agreement. If you want your company to remain entirely your company, this may not be the route to take. Since there is a large amount of risk involved in the starting aspects of a new company, the return on investment required may be high depending on the amount of risk.

Resources:
To find an investor that will take a chance with your company, first look in your industry or community. Angels are interested in technology, knowledgeable business ventures, community connections and products that guarantee a high return on investment. They will not only look at your business proposal, they will assess you as an entrepreneur. Check out these sites:

• http://www.goldenseeds.com/AngelNetwork.aspx

https://www.gobignetwork.com/

http://www.techcoastangels.com/

http://www.investorscircle.net/

http://womenangelsllc.com/

http://angel.co/

  

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