9 Keys To Finding The Perfect Angel Investor For You

Startup Professionals Musings

As a long-time advisor to entrepreneurs, and a former angel myself, I still find startups confused about the definition of an angel investor, and how and when to attract one. Angels spread their risk by making multiple smaller investments.

Finding The Right Angel Investor For Your New Venture

Startup Professionals Musings

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. USA Angel Investment Network. Angel Capital Association (ACA).

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Accredited Angel investors are non-professionals investing their own money, while venture capitalists are professionals who invest someone else’s money (usually from large institutions). Angel investors wish for the same return, but may accept a 5X deal.

How to Land Funding From Angel Investors

Up and Running

Are you wondering how to land funding from angel investors? This article focuses on angel investors in the U.S., and the process of raising angel investment for high-tech or high-growth startups. We should also point out that angel investment is different from venture capital. People often use “ venture capital ” as a bucket term to include angel investment, but that’s unnecessarily confusing. Your angel might be a rich uncle, for example.

Angel Investors Are Still The Lifeblood Of Startups

Startup Professionals Musings

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). New crowd funding platforms on the Internet, like Kickstarter and IndieGoGo , as well as the Jobs Act of 2012 , are expected by many to ramp up regular people’s ability to fund new opportunities and kill the need for angel groups.

8 Insights For Startups To Attract Angel Investors

Startup Professionals Musings

But many have no insight or connections to the ethereal angel investment community, which actually funds more startups then all other venture sources combined (over $25 billion annually). In fact, there are a few key sites to help you find angels, including AngelList and Gust , but these don’t tell you very much about how Angels work, and how to find the right ones for your startup. Thus, angel investments from across the country or internationally are rare.

8 Angel Investors That Entrepreneurs Should Avoid

Startup Professionals Musings

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. The entrepreneur’s tendency to be in a huge hurry to obtain the funding can end up being disastrous, and play into the hands of these less scrupulous investors. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

8 Ways To Get Off The Ground With Angel Investors

Startup Professionals Musings

Angel investors are still the lifeblood of early-stage startups, despite the surge of activity in crowdfunding and an increasing early interest from venture capitalists. According to the Angel Capital Association , at least 300,000 people have made angel investments in the last two years, totaling $24 billion in the U.S. These are all accredited investors who risk their own money. Contrary to a popular myth, angels don’t fund dreams.

What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

The question of venture capitalist versus angel investor often arises. Venture capital and angel investments offer excellent options to startup businesses. Investor Involvement. They are less likely than angel investors to provide capital to companies that don’t have at least some proven success in their markets. Entrepreneurs can usually expect a larger investment from venture capitalists than they can from angel investors. Angel Investors.

Start Here if You are Looking for Angel Investors

Startup Professionals Musings

If your startup is looking for an Angel investor, it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right Angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. Angel Capital Association (ACA).

5 Things To Look For In An Angel Investor

YoungUpstarts

Your first investors can be your most valuable assets so when looking to raise finance you should always look beyond the capital to what else the angel can bring to your business. For that reason you should do due diligence on all potential investors before pitching, and then pay careful attention to the questions they ask after you’ve made your pitch. Below is some guidance on what to look for in a potential investor: 1.

10 Action Items to Keep Angel Investors Hovering

Startup Professionals Musings

Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. But many entrepreneurs don’t realize that Angels are also extremely discerning in the projects that they will invest in, rejecting approximately 97% of the proposals submitted to them, according to the California Investment Network. Don’t expect the pomp and celebrity of the Angels on Shark Tank , but they do ask a lot of the right questions.

Angel Investors want to fall in love

Austin Startup

Raising funding from Angel Investors can feel like a catch-22. It’s easy to figure out who the active angel investors are but it’s hard to find the right time to pitch them. Not all investors are the same. Angel Investors are investing their own money?—?they

Entrepreneurs Turned Angel Investors: A Look At Some Of The Best

YoungUpstarts

An angel investor who also has experience in the start-up world has a much greater understanding of how businesses work, what fears and concerns the start-up owner or owners have and much more. 3 Great Examples of Entrepreneurs Turned Investors. Operating executive, entrepreneur and investor Varsha Rao is a good example of someone who has seen both sides of this situation. Angel Investors Understand the Difficulties Startups Face.

Four Qualities Every Angel Investor Looks For When Backing A Startup

YoungUpstarts

Securing adequate financing for any new venture nowadays is an exceptionally difficult proposition, which is why angel investors are considered so valuable to the startup ecosystem. To successfully secure the early stage support of an angel investor, entrepreneurs need to determine what precisely they are looking for when evaluating an investment opportunity. In general, angel investors tend to group entrepreneurs into two distinct categories.

Angel Investors Won’t Swoop Down on Your Startup

Startup Professionals Musings

A while back, I outlined “ Most Startups Get No Professional Investor Cash ” for startups, listing angel investors as alternative #6. I still get a lot of questions on these mysterious and often invisible investors, so here is another attempt to bring them out of the ether. By definition, an angel investor is not an “institutional investor.” So “good” angels are ones with motives that are consistent with what you bring to the table.

How to Find and Close Angel Investors from a Standing Start

View from Seed

Whether an entrepreneur is raising a smaller (pre-)seed round entirely from individuals or she has a seed-stage or larger VC firm involved in (leading) the seed syndicate, it’s somewhere between necessary and optimal to have multiple individual angel investors involved. First and foremost, angels can provide capital. That’s especially true for angels. Again, that’s especially true for angels.

Six Entrepreneur Skills That Angel Investors Love

Startup Professionals Musings

I’ve noticed that some entrepreneurs seem to have no trouble attracting investors, while others with a great business plan struggle with it. The reality is that angel investors are humans, and personal traits often make or break the relationship, even before the investment is considered.

Suggestions for Angel Investors

Feld Thoughts

I’m on an Acela train between Boston and New York (listening to Boston’s More Than A Feeling – how recursive) on my way to the TechStars Boston 2010 Investor / Demo day. I wasn’t able to make it to Boston yesterday for the Angel Boot Camp as I was running around NYC with the CEO of a company I invested in last week introducing him to a bunch of potential customers and partners. It sounds like Angel Boot Camp rocked. Run in a pack: The best angels run in packs.

Angel Investors Skip Startups With No Profit Motive

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. Yet as an active Angel investor, I still get this question on a regular basis, so I’ll try to outline the considerations in common-sense terms. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Six Tips To Finding the Elusive Angel Investor

Startup Professionals Musings

A while back, I outlined “ Ten Top Funding Sources for Startups ” for startups, listing angel investors as alternative #6. I still get a lot of questions on these mysterious and often invisible investors, so here is another attempt to bring them out of the ether.

30 Questions Angel Investors Will Ask You

Up and Running

When you pitch a startup to angel investors, you want to get questions. Don’t expect that when you’re pitching real angels. Right or wrong, most angel investors consider themselves busy, full of insight, and worth listening to as much as they are worth talking to. So few pitches last through a slide deck’s worth without the investors interrupting with questions. See Also How to Impress Angel Investors. Who are your investors so far?

Entrepreneurs Court New Super-Angel Investors

Startup Professionals Musings

I see now emerging a new wave of investors, popularly known as “super-Angels,” micro-VCs, or “super-seed” investors. Due to the struggling economy as well, traditional individual Angel investors haven’t been able to fill the gap. It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. These Angels typically don’t demand board seats, and are not as heavy-handed as VCs.

Find an Angel Investor, Without Going Through Hell

Startup Professionals Musings

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right angel for your, and for your situation.

Impact in Angel Investor Decisions

VC Adventure

I’ll be speaking at an Impact Angel Group event on February 12th. With a few other angel investors, I’ll be talking to other angel investors, along with prospective angel investors, about the role of impact investing the community, as well as in our own portfolios. Among other things, we’ll discuss our angel investment strategies and openly share things like the percentage of our wealth that we allocate to angel and impact investing.

Are Individual Angel Investors Starting To Get Tapped Out?

Feld Thoughts

“I’ve had a few conversations recently about how individual seed investors are getting kind of tapped out – for a variety of reasons, but in general it’s not that easy to find people who are still actively investing. If you are an active angel, I’d love to hear what you think. But generally the pool of angel investors is increasing and the prolific ones who have a strategy ( such as the angel strategy I advocate ) seem to be keeping a steady pace.

8 Reasons All Angel Investor Money May Not Be Equal

Startup Professionals Musings

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. The entrepreneur’s tendency to be in a huge hurry to obtain the funding can end up being disastrous, and play into the hands of these less scrupulous investors. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

If You Can’t Find An Angel Investor, Look Again, Here

Startup Professionals Musings

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. The challenge is to find the right angel for you, and for your situation. Here are some basic principles: Angels invest in people, more often than they invest in ideas. Angel investors are people too. USA Angel Investment Network. Angel Capital Association (ACA).

5 Things Startups Can Learn from Angel Investors

Up and Running

Angel investors can teach you a lot about money, whether or not you’re seeking funding from them. I’ve seen this over and over in my dealings as a member of a local angel investment group. What we do at the Willamette Angel Conference is the rule, not the exception. Angel investors are individuals willing to invest their own money to fund new startups. “Investing in a startup that becomes a healthy small business can be a loss for investors.”

11 Angel Investor Blogs You Should Be Reading

Up and Running

In the business world, angel investors are sometimes equated with actual angels, sent to help us fund what could not otherwise be funded. These guardian angels of innovation are responsible for bringing many new ideas to life. The thing is, many of us—most notably those seeking investment—don’t know a lot about what angel investors are looking for in a person, idea, or company, before they agree to invest. A2A—Analyst to Angel.

What Angel Investors Look For

Mike Michalowicz

Entrepreneurs seem to confuse “angel investors” with givers of free money grants. An angel investor is an investor. Just like you buy Ford stock with an expectation for return, angel investors do the same. Angel investors do grant your wishes for growth and stability, but they do it strategically. And now that I think about it, angels do it that way too. Entrepreneur Strategies Money Strategies angel investor find an investor

Michael A. Wolf – Angel Investor and Entrepreneur

Startup Professionals Musings

Mike Wolf is a mentor of mine, and a role model for many technology entrepreneurs and investors in the Phoenix, Arizona, area. I chair the Selection Committee of the Arizona Angels, and have been an active Angel investor as General Partner of Lobodos Ventures over the last thirteen years.

Non-Profits Need Angels, But Not Angel Investors

Startup Professionals Musings

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. In addition, the best non-profits turn out to be the angel, rather than require one.

Some Angel Investors Have Not Earned Their Wings

Startup Professionals Musings

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. Litigious angels. The litigious investor will look for almost any excuse to take you to court.

Challenges and Rewards for Angel Investors

Gust

One of the most common questions we get is: What are the biggest challenges and rewards of angel investing? High net worth individuals become angel investors for a number of reasons, but the opportunity to work with entrepreneurs and provide guidance to founders is typically high on the list. In this video, angel investor Chenoa Farnsworth explains why, interestingly, both the biggest Read more >.

Where To Find Angel Investors

Growthink Blog

When raising funding, you always have several options - from securing a loan from a bank, receiving a secured line of credit, crowdfunding, or seeking investors. When looking for investors, most people think of venture capitalists, firms who manage pools of money and invest it in startup projects. Angel Investors are a Realistic Option Another option for the shrewd businessman or businesswoman, though, is to find angel investors.

How to Raise Startup Funding from Unlikely Angel Investors

Up and Running

Angel investors come from a variety of ages, backgrounds, and professions. I’m not your average angel. I’m not active in an angel group. I live in a small town surrounded by farms and I made my first angel investment at 29 because my dad said it was a good idea. I’m not your average angel. According to the Angel Capital Association: Angels (private money) invest in 55,000 startups each year versus 1,500 companies by VC (venture capital) funding.

Do most angel investors make money?

Gust

The reality is that results in angel investing tend to bifurcate: “Professional” angel investors, who are investing calmly, steadily, relatively-rationally, over a long period of time and with a strong knowledge of both investment math and early stage realities, tend to not only make money, but do quite well: the average return for a comprehensive, well-managed angel portfolio is between 25% and 30% IRR.

Protect Your Angel Investors

Austin Startup

Background Reading: Burned Relationships Burn Down Companies The Fiduciary Duties of Founders Angel Investors v. Continue reading on Austin Startups ». funding startup austin venture-capital

Six Great Places to Find Angel Investors

Growthink Blog

Last year, according to the Center for Venture Research at the University of New Hampshire, 67,030 ventures received angel funding. In total, these angels invested $22.9 Importantly, the Center for Venture Research found that the number of angel investors providing the funding last year was 268,160 individuals. So, clearly, there are a lot of angel investors out there. So, you''re probably thinking: how do I find these angel investors?

Can Fortune 500 executives also be angel investors?

Gust

There are quite a few senior executives of large companies who are angel investors. The only legal issue is that they need, like anyone else, to be an accredited investor. Invested Interests angel investors fortune 500 executives private company public company

10 Action Items to Keep Angel Investors Hovering

Gust

ABC Shark Tank Angels via Elite Daily. Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. But many entrepreneurs don’t realize that Angels are also extremely discerning in the projects that they will invest in, rejecting approximately 97% of the proposals submitted to them, according to the California Investment Network. Remember the old adage that “investors fund people, not ideas.”

How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

Got a question for one of the angel investors mentioned below? Today is Ask an Angel day! Tips from real angel investors about how to impress them and stand out from the crowd. Before I jump in and share the secrets of how to impress angel investors, I should tell you what an angel investor is, and how they differ from venture capitalists. Many angels are entrepreneurs themselves, or executives and business or community leaders.