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Who Are Angel Investors
Written by: Bill WarnerArticle Overview: Entrepreneurs often talk about needing angel investor money to launch their companies. When asked about their financing plan, they are heard to say, "I am going to raise $500K from angels." When asked what their strategy for approaching angels is and who they are going to approach, they often go silent and have a blank look on their faces.
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Who Are Angel Investors
Entrepreneurs often talk about needing angel investor money to launch their companies. When asked about their financing plan, they are heard to say, "I am going to raise $500K from angels." When asked what their strategy for approaching angels is and who they are going to approach, they often go silent and have a blank look on their faces. To many entrepreneurs, angel investors are a general term for a form of start-up investment, but they don't clearly know who angel investors are.
Who are they?
Technically speaking, angel investors are wealthy individuals that are accredited by SEC guidelines, who dedicate a small portion of their overall net worth to investing in high risk start-up company investment. Angels are successful business people who have a spot in their hearts for entrepreneurs. Most angels are quite mature in their careers and have accumulated a considerable wealth of business experience as well. They love the challenge of start-up companies and in many ways want to contribute their experience and know-how to other entrepreneurs. It's a chance for them to "give back" to the business community some of what has made them successful. They like helping entrepreneurs and want to help them become successful.
Most angel investors are likely to have had considerable exposure to early stage companies both as a participating entrepreneur as well as an investor. You may know some already. They could be friends, family members, college buddies, country club associates and business associates. There are hundreds that you do not know, like doctors, lawyers, accountants, and other successful business people. When identifying who angels are, start with your own contact list and determine who may be qualified to invest in your company, and who may know other people who could invest and then give you a referral to them.
There are many amongst us
You may know that angel investors fly in formations. There are dozens of angel investor organizations throughout the area that look for good investments for their members. Mature groups like Academy Funds, Atlantis, Charlotte Angel Partners, Inception Micro Angel Fund, NCIdea, Piedmont Angel Network, Southern Capitol and Tri-State Investment Group represent hundreds of angel investors that have invested in dozens of local companies. Angel networks like the Blue Ridge Angel Investor Network, ECU Entrepreneurial Initiative, Triangle Accredited Capital Forum, Wed3 and Wilmington Investor Network introduce good start-up companies to their members. Even local venture capital firms sometimes act like angels by investing in selected start-up companies, like Aurora Funds, InterSouth Partners, Pappas Ventures and River Cities Capital. Not all of these organizations are now actively investing in companies, but many of the people they represent are.
Where do you find them?
Angel investors hang out at many of the local networking events like venture capital events, technology events, biotech events and gatherings put on by local businesses and associations. These events are great opportunities to meet angels informally to get them interested in your business proposition. Get tapped into the local media links to find out when and where these events are.
You probably know more qualified angel investors than you think you do, but you most likely have to expand your list of angel investors in order to find the ones that will be interested in your company. Step one is finding out who they are.
How To Find An Angel Investor
Funding Your Start Up
Attracting Angel Investors
What's The Best Structure For A Pre-VC Investment?
How Many Angels is the Right Number
Article Tags: 500k, accountants, angel investor, angel investors, business associates, business community, business experience, college buddies, company investment, contact list, early stage companies, friends family, investor money, investor organizations, net worth, sec guidelines, small portion, start up company, successful business people, wealthy individuals
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toronto angel group
- The Toronto Angel Group is a very hard group to get into. You have to have a very stable and viable business plan and they like to stick their fingers into your pie and they are usually looking to invest big bucks. Which means that they usually want to take control.
If you look deeply into these groups you need to know someone or have a very good idea with potential clients backing you up.
In my opinion, other sources of financing will give you better control of your business or learning to ask for the money upfront. One of the things I found is that new buisness owners are afraid to ask for the money upfront but every other business expects you to unless you have a proven credit history.
Good luck with the Angel Investors
Re: SEEKING PRIVATE OR ANGEL INVESTOR
- Do a Google search for Angel Investors. You will have many options to choose from. I think SCORES is one but I am not sure. Don't email them, pick up the phone and contact as many as you can. You need too have a rock solid business plan for these investors to even smile at the notion. Good luck with your journey.
Re: need a capitalist to hear me out
- If you have solid business plan, there are thousands of Angel Investors and Venture Capitalists that will fund your project. Google "Venture Capitalist" and you will get tons of investors who are ready to fund your project
New Small Business Topic
- Hello everyone,
I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section?
Here's a list of what we currently have:
Angel Investors
Branding
Bank Loans
Business Coaching
Business Plan
Franchises (New)
Insurance
Legal
Marketing
Public Relations
Sales
Small Biz Loans
Venture Capital
Angel Investors
- From Wikipedia, the free encyclopedia the definition is:
An angel investor or angel (known as a business angel in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors are organizing themselves into angel networks or angel groups to share research and pool their investment capital.
With that being said, Angel investors can come from a number of resources. You can try ACA (Angel Capital Association) in US / CA.
Family & friends- Well, for me personally, I never do that type of business with family or friends for fear of a damaged relationship. I do not borrow from them, nor allow them to borrow from me. However, in my business I see it all the time.
One place you can also try if not self employed, is with your current employer or even co-workers (of course having a good relationship with them is key).
Also, get the information out to everyone and anyone about how you are seeking an angel investor, because you never know...just look at Evan's experience!
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