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. Angel investors wish for the same return, but may accept a 5X deal.

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”). Rose, according to his recent book, “ Angel Investing.”

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). Angels are typically current or former entrepreneurs who want to bring more than money to your startup.

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. Litigious angels. The litigious investor will look for almost any excuse to take you to court.

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. These are all accredited investors who risk their own money. angel investor early-stage entrepreneur startup

Understanding Different Types of Angel Investors

View from Seed

We at NextView Ventures invest exclusively in a startup’s seed-stage round , meaning that many if not most of our deals are made alongside individual angel investors. These angels, however, come in many different shapes and sizes. The Super Angel. The Domain Angel.

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 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

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. Below is some guidance on what to look for in a potential investor: 1.

Learn From the 5 Core Principles of Angel Investors

Startup Professionals Musings

If your startup is looking for an Angel investor, does it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but Angel investors expect a real plan.

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.

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.

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. Most of these investors are members of Angel groups that have a rigorous filtering and screening process, to select the top 3% and most fundable proposals.

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.

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.

5 Angel Investor Biases That You Can Capitalize On

Startup Professionals Musings

If your startup is looking for an angel investor, does it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but angel investors expect a real plan.

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. 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.

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.

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. A2A—Analyst to Angel.

Five Things Every Entrepreneur Should Know About Angel Investors

Startup Professionals Musings

If your startup is looking for an angel investor, does it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up? Maybe friends and family will give you money with no plan, but angel investors expect a real plan.

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. Don’t expect the pomp and celebrity of the Angels on Shark Tank , but they do ask a lot of the right questions.

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.

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.

Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

Gust

I began studying angel investing returns about 10 years ago as a result of a problem I couldn’t resolve: The investing world seemed certain that angel investors were rubes. Are angel investors just unwitting philanthropists or legitimate entrepreneurial 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.

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. USA Angel Investment Network.

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.

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

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.

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. Not all shark angels are on the Shark Tank TV show. Litigious angels. Superior angels.

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.

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.

The Startups Weekend Phenomenon and Angel Investors

Gust

I’m posting this here for two audiences: angel investors and founders (including would-be and wanna-be founders) of startups. . I was one of four judges, all of us members of local angel investment groups working with the gust.com platform.

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

What are the average terms for Angel Investors’ seed fundings?

Gust

But as a general rule of thumb, the investors in each round of financing will get somewhere between 15% and 35% of the equity in the company, and the total amount raised in each round should be enough to get the company to a significant increase in value. For an overview of the amounts raised at different stages from different sources, see the answers to What is the range of capital you can expect from an Angel vs VC?

Angel Investors Spotlight: An Inside Look at Hudson Valley Startup Fund’s Investment Process & Advice for Founders

Gust

The post Angel Investors Spotlight: An Inside Look at Hudson Valley Startup Fund’s Investment Process & Advice for Founders appeared first on The Gust Blog. Investors' Insights advice angel investors entrepreneursHudson Valley Startup Fund brings together a network of the region’s successful business and community leaders to give back, supporting the launch of the next Hudson Valley visionaries.

If You Need Angel Investors, Avoid These Startups

Startup Professionals Musings

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. Generally, the same criteria applies to venture capital investors, although they invest other people’s money, at a later stage, in larger amounts.

Which angel investors are interested in crowdfunding startups?

Gust

But taking a look at some operating US-based companies that currently come to mind when thinking about the space ( Kickstarter , Indiegogo , AngelList , Gust , CircleUp), some of the known angels who have invested in them include: Jack Dorsey. Industry Experts angel investors AngelList CircleUp crowdfunding Gust kickstarter startups

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. How Angels Invest. I also learned quickly that no two angels are alike.

Do Angel Investors Care About University Degrees?

Gust

So how do angel investors fall on this question? My bias, as an angel investor: other things being equal, yes. Looking beyond my specific bias, thinking of people I’ve worked with in my groups and in different investor venues, I think it’s fair to talk about some general rules that will apply to most situations: most investors, looking at most potential deals. Angel investors are all individuals.

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.