What is an angel investor?
Most angel investors are successful business leaders or professionals who make significant investments in other companies, usually early-stage startups. They typically invest in businesses within their particular area of experience and expertise. The most important role of an angel investor google_ad_client = ‘pub-2905054723170537’; // substitute your client_id (pub-number) google_ad_channel = ‘3393335763’; google_ad_output = ‘js’; google_max_num_ads = ‘3’; google_ad_type = ‘text’; google_feedback = ‘on’; google_targeting = “content”; is to infuse your startup with cash. But unlike other types of financing such as bank loans angel investors can do more than keep your company´s coffers full. Angels often take a hands-on advisory or consulting role in the company, especially when it’s just starting out. Angels can be invaluable resources who help you to connect with future rounds of financing, to build your executive team, to choose advisory board members, and to meet potential business
Although large venture capitalists look for bigger and bigger investments to make and for companies with the ability to grow to $100 million in sales in five to seven years, high net worth individuals or small group investors, commonly called “Angels,” account for more capital invested in small companies than all of the venture capital funds combined. The amount of money Angels want to invest and the terms (expected return on investment, exit strategy, and their interest to participate in running the company) varies with each individual. According to the Colorado Capital Alliance, surveys of angel investors show that: • Angels are seeking companies with high growth potential, proven management and sufficient information about the company, its management team, and its market to be able to assess a company’s value • On average, Angels expect 10 to 15 percent above of the S&P 500 return on equity • Typically, Angels invest in companies seeking between $50,000 and $1,000,000 • Angels gener
An angel investor or angel (known as a business angel or informal investor, is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.
Angel investors are usually wealthy individuals or business people who make high-risk, potentially high-yield investments in start-up companies or small businesses who are looking to expand their market opportunities. Angel investors typically focus on companies that have already developed a basic concept and business strategy, and are in the seed stage of investment. An emphasis is placed on business enterprises with the potential for rapid growth. In addition to offering significant capital to launch business entities, many angel investors also offer their business expertise and actively participate in the management, operation, and marketing of the business. NorthStar President and Founder David J. Ward is an angel investor in Origin Investment Group, a Wisconsin angel investing group operated out of the University of Wisconsin – La Crosse.
