Seeking an Angel Investor for Your Business? Here's What You Need to Know
Soliciting an angel investor for your business could help your fledgling idea take flight, but if you fail to take some precautions, you could end up with your idea stolen, your business taken from you, or even in jail.
Angel investing is one of the most talked-about funding options for small businesses. While every entrepreneur wants to get angel investment, few know where to even start. Angel investors are relatively rare. Not only are they difficult to find, but they can be incredibly picky about the investments that they participate in. At the time of this writing, Angel investors have more deal opportunities than they have ever had, which allows them the flexibility to have their pick of the litter.
If you are going to solicit Angel investment for your company, you need to have a strategy.
Who are Angel Investors
- Genuine independent wealth
- An understanding of their own appetite for risk and a willingness to accept risk
- An ability to assess entrepreneurs and make decisions based on a combination of gut feeling and due diligence
- A willingness to step back and let those in whom they have invested take control and make mistakes with their money
- A readiness to adapt to new information and new technologies
- An understanding of the essentially illiquid nature of angel investment
- The ability to be pragmatic, patient and have realistic expectations
- The experience of having been there before i.e. have experience of growing a young company
- An awareness of their own strengths and weaknesses to be able to know how they can add value to the business
- Access to networks that can assist young businesses to grow
- The desire, interest and energy to make a difference. Seven out of 10 angel investments are made within 50 miles of the angel's home or office.