An angel investor or group of investors that can help out in raising the capital for a business that is about to start up. In return, the investors can be given credit to the ownership of the business. These angels are usually entrepreneurs who want to help out promising entrepreneurs with their own businesses. The investment from these angels can be from $150,000 to about $1.5 million dollars.
Here are some ways that angel investors can work with you:
- Help for budding entrepreneurs. A large percentage of angel investors choose to work with budding entrepreneurs and small companies who are just starting out in business. Most of them are companies with no more than 20 employees. The angel investor puts in hundreds and thousands of dollars if they believe that the business has a good future. For entrepreneurs who are just starting out, the funding given by the angel investor will greatly help in developing the business into something bigger.
- High potential. Most angel investors only invest in about 30% of the deals that are pitched to them. The ones that they choose are the ones that they see have a good potential in becoming a big business. If you are planning to pitch your business idea to an angel investor, you must make sure that you have a solid plan that has a potential to be big someday. Also, the group that makes up your company must have sufficient talent to be able to work in favor of the business.
- Helping the start up. There are different types of angel investors that you can work with. Some angel investors choose to simply be a source of capital and they don’t bother much with helping out in managing the business. Other angel investors prefer to contribute something to the business other than the money that they invest. You can look at the both situations as an advantage. When the angel investor does not want anything to do with the business, you can set your own strategies and build up the business by yourself. If the angel investor chooses to have input in the business, you can collaborate your ideas for the benefit of the company.
- Other types of help. Some angel investors have been in the business for many years. Some of them help the businesses that they invest in by giving financial advice, marketing techniques and legal advice. Not all angel investors will do this but most of them do. This is because they want your business to thrive as much as you do.
These are some of the ways that angel investors can work with you. If you are planning entering into a business and you have a plan that has potential, you can start out by applying for help from angel investors. This will be a great way for you to start your own business and get some tips from people who are already experienced.