What is an Angel Investor?

What is an Angel Investor?

These are either individuals or groups that are looking to make an investment in new or existing businesses. The incentive on such investments is that they bring a higher return than most other methods of investing.

Most angel investors are entrepreneurs who have had their own business succeed in part to such investments, and / or perhaps have a good knowledge of the market sector that they are involved in.

Especially in times like the last few months, where bank loans have all but dried up, many entrepreneurs will seek angel investors in order to help them get their own ideas from self-funded to more advanced funding, such as that from a venture capitalist.

There is no "set amount" per se for angel investors, and the range can go anywhere from a few thousand, to a few million dollars. But angel investors can offer more than just funds that can take your ideas to the next level. Many business angels offer solid expertise in how the market works, and have generally worked in the same sector as you have. Our site features potential angel investors from all sorts of market niches, ranging from farming and construction, all the way to telecoms and medical.

Because such investments are generally "private investments" exact data is not disclosed. However, it is said that around 2 million people in the U.S. alone are capable of making angel investments, with a few hundred thousand actively participating to some extent, including speculation.

Each angel investor will have their own requirements, perhaps requiring a stake in your business, and some may want a position in your board, or some level of control in the company's direction. On the other hand, some investors will take a passive role and only want ongoing reports on the company's performance. In most situations though, angels will integrate some regulations in what the entrepreneur can do.

Finding an angel investor is easy on our website, which features thousands of business angels in the Midwest US, as well as members from our network of sites located all around the US and internationally. But going beyond finding the right investor, the entrepreneur must be ready with a range of material to make the investor feel confident on their investment.

Executive summaries, market research, long term forecasts and marketing plans are potentially some of the many things your angel investor may want to see. Also make sure that the investor is someone that you feel comfortable communicating with. After all, they will become a big part of the growth and experience that your business undergoes.

Recent Pitches