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Business Plan InformationAngel Investors: Who They Are & Once
Are They Appropriate
by:
Dave Lavinsky
Angel investors are individuals who invest in emerging business ventures. Angels typically provide some
capital and know-how to companies who are in either their start-up or expansion phases. To reflect the accrued risk of investment in such firms, angels seek a higher rate of return versus traditional public stock investments.
Angel investors fulfill the funding need that exists between capital provided by friends and family and capital provided by venture capitalists. Individual angel investors often write checks from $25,000 to $100,000. Recently, angel investment has become much organized, and angel groups often invest from $250,000 to $500,000 at a time to meriting ventures.
Angel investors often have similar funding criteria as venture capitalists. They want to see proprietary intellectual property, a large market size, management team members with expertness and experience and a current valuation that allows for a nice return on investment.
In distinguishing and attracting an angel investor, companies should seek angel groups that are placed in their region. For instance, the Technical school Coast Angels have funded over 85 Southern California-based companies since 1997. Once
seeking individual angel investors, it is critical to network in order to create a personal connection between yourself and the angel. Also, ideally the individual has experience inside
your specific field so he/she can provide industry contacts and operational expertness in addition to capital.
Just about the author:
Growthink Business Plans has developed over 200 business plans for clients have jointly raised over $750 million in financing, launched many
new product and service lines and gained competitive advantage and market share. For much information go to http://www.growthink.com
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