Where Are The Angel Investors?
"To the cash-challenged entrepreneur, angels can be truly divine messengers - slightly more earthly than the winged representatives from of the Big Guy upstairs, but every bit as welcome in times of trouble."
"Typically, angel investors are high-net worth individuals interested in putting up cash for promising early-stage companies in exchange for equity. While venture capitalists have garnered many of the headlines over the last decade or so, angels have soared quietly behind the private equity scene. But their pockets run just as deep, and their message - just as sweet."
"The only problem is: Many entrepreneurs just can't find them."
"While there have always been wealthy patrons willing to bankroll a great business idea, most of them expect a substantially higher return than they would get from more traditional investments, Sandles explains. "Many are successful self-made entrepreneurs with lots of money to invest. They want to help other entrepreneurs get their business off the ground" - and reap rewards commensurate with the risks."
"Angels technically bridge the self-funded stage of a business when cash from friends, family and the founder's savings or credit has been exhausted. Angel money gets the business to the stage where it could attract the next level of funding from a venture capitalist - somewhere in the $100,000 to $1.5 million range (funding amounts by VCs varies from $2.5 to $15 million). Angels like to make investments that look promising to them no matter the industrial segment."
"Angel networks invest primarily in start-up or early expansion companies, explains Sandles. "They like to invest in companies that interest them with at least one product in prototype," she explains. "Usually there is a customer or two and the product is in testing mode. Angels like to see customer acceptance.""
"They are usually more forgiving when it comes to investment requirements, too. "They don't want a fancy experienced executive," Sandles says. "They want a scrappy, can-do entrepreneur who has deep industry or product experience, not necessarily years of business experience.""
"While angels don't want to fund red ink, Sandles explains, they often are willing to abide a more modest present-day revenue trajectory, typically under the $1 million sales mark. And while VCs like to invest in their own backyards, they prefer high-growth tech or science-based investments. As a group angels are not partial to particular investment segments and invest across all industries, but they too like prefer to keep their money close to home investing in their state or close by. In exchange for their money, angels take a vested interest in the business with some becoming actively involved assisting in other aspects beyond the initial financial commitment, such as by supplying office infrastructure or management and marketing expertise."
Read more here.
"Typically, angel investors are high-net worth individuals interested in putting up cash for promising early-stage companies in exchange for equity. While venture capitalists have garnered many of the headlines over the last decade or so, angels have soared quietly behind the private equity scene. But their pockets run just as deep, and their message - just as sweet."
"The only problem is: Many entrepreneurs just can't find them."
"While there have always been wealthy patrons willing to bankroll a great business idea, most of them expect a substantially higher return than they would get from more traditional investments, Sandles explains. "Many are successful self-made entrepreneurs with lots of money to invest. They want to help other entrepreneurs get their business off the ground" - and reap rewards commensurate with the risks."
"Angels technically bridge the self-funded stage of a business when cash from friends, family and the founder's savings or credit has been exhausted. Angel money gets the business to the stage where it could attract the next level of funding from a venture capitalist - somewhere in the $100,000 to $1.5 million range (funding amounts by VCs varies from $2.5 to $15 million). Angels like to make investments that look promising to them no matter the industrial segment."
"Angel networks invest primarily in start-up or early expansion companies, explains Sandles. "They like to invest in companies that interest them with at least one product in prototype," she explains. "Usually there is a customer or two and the product is in testing mode. Angels like to see customer acceptance.""
"They are usually more forgiving when it comes to investment requirements, too. "They don't want a fancy experienced executive," Sandles says. "They want a scrappy, can-do entrepreneur who has deep industry or product experience, not necessarily years of business experience.""
"While angels don't want to fund red ink, Sandles explains, they often are willing to abide a more modest present-day revenue trajectory, typically under the $1 million sales mark. And while VCs like to invest in their own backyards, they prefer high-growth tech or science-based investments. As a group angels are not partial to particular investment segments and invest across all industries, but they too like prefer to keep their money close to home investing in their state or close by. In exchange for their money, angels take a vested interest in the business with some becoming actively involved assisting in other aspects beyond the initial financial commitment, such as by supplying office infrastructure or management and marketing expertise."
Read more here.
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For more information, visit www.EvanCarmichael.com. |
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