Angel Investor


An angel investor/angel/ business angel/ informal investor/angel funder, private investor/ seed investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Angel investors are usually found among an entrepreneur's family and friends. The capital they provide can be a one-time injection of seed money or ongoing support to carry the company through difficult times.

Angel investors give more favorable terms than other lenders, as they are usually investing in the person rather than the viability of the business. They are focused on helping the business succeed, rather than reaping a huge profit from their investment. Angel investors are essentially the exact opposite of a venture capitalist.

Angel investing in start-ups has been accelerating. High-profile success stories like Uber, WhatsApp, and Facebook have spurred angel investors to make multiple bets with the hopes of getting outsized returns.

What angels particularly care about are as follows.

(1) The quality, passion, commitment, and integrity of the founders.

(2) The market opportunity being addressed and the potential for the company to become very big.

(3) A clearly thought out business plan, and any early evidence of obtaining traction toward the plan.

(4) Interesting technology or intellectual property.

(5) An appropriate valuation with reasonable terms.

Sunday, 10th Jan 2016, 11:44:47 PM

Add Your Comment:
Post Comment