Thursday, January 20, 2005

All About Angel Investing

"So what is an angel investor? In plain language, this is someone who invests his or her own funds in private companies at the earliest stage."

"These people typically have a net worth of $1 million to $10 million. These investors also bring with them expertise and some affinity or interest in a company’s products, markets and management team. These people are typically willing to take financial risks. According to MIT’s Entrepreneurship Center, there are four categories of angel investors:

1) Guardian Angels: This group brings entrepreneurial and industry expertise. These people have been successful entrepreneurs in the same sector as the new company.

2) Entrepreneurial Angels: This group has experience in starting companies but in different industry sectors.

3) Operational Angels: This group brings industry experience and expertise to the table but from large and established companies. These people may lack firsthand experience in the problems of a start-up.

4) Financial Angels: This final group invests purely for the financial return."

"According to an October 2002 report by the Ewing Marion Kauffman Foundation titled “Business Angel Investing Groups Growing in North America,” most members of angel groups invest between $25,000 and $100,000 in each deal (but can go as high as $250,000)."

Read more here.
For more information, visit www.EvanCarmichael.com.

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