Angel Financing

Datafordummies · Site Admin

Angel investment is one of the ways for start-up businesses to raise money for startup capital. Angels take a risk in investments, and an interest in the companies in which they invest. Businesses of all kinds are sought by angel investors - real estate, brokerage, pet supplies, craft stores, entertainment, restaurants and catering, appliance repair, retail, greeting cards, travel, photography, consulting, interior design, beauty products, online businesses
and others.

Angels take a vested interest in the business startups which they assist financially.

Seeking and raising ample start-up capital is a main concern
in business start-ups, and like locations and competition,
sources of funding should be researched and considered.
Angel investors, mostly prior entrepreneurs, understand the
needs of a new entrepreneur and his start up business, and are
able to aid new companies in more ways than one.
An angel investor is generally an independently wealthy individual,
as opposed to a venture capital firm or fund, and takes a risk upon
investment; angels may not see returns until ten years down the line.
Finding angel investors has become much easier with advanced
communication media, such as the internet and angel search programs.
Seek angel investors who match the financial needs of your startup business. Remember - An angel investor looks for terrific ideas, competent management team, real market value, outstanding potential for growth, and potential
for increased return on investments.

Cash angel investors can aid startup companies in their field of interest with cash and advice to make those businesses successful. They help new companies by giving financial aid as start up money, and through experienced assistance in putting management on the right track. Cash angel investors can be sought over the internet, but they may have certain criteria that your company must meet before they consider investing.

The Angel Profile
There are approximately one million angels in the United States, they are the leading source of real risk capital.

Who They Are:
Average annual income 90,000.00 or more
Minimum net worth, 1 Million
Typically Business owners
Age 40-55
Investment range 60% under 50,000.00, 40% from 50,000.00 to 500,000.00
Most interested in Startups
Investment standards not as stringent as banks or venture capital companies
Less interested in control
Decision-making process a few weeks typically

Boutique investment bankers, financing consultants, accountants, merchant bankers, loan brokers and venture capital clubs typically have a network of angels that invest with them or are consultants to them.