Angel investing decoded. Business financing is on the mind of most
entrepreneurs, but getting the working capital you need to grow your business
doesn't have to be difficult, many companies these days turn to angel investors. And these
options can work for start-up ventures, but there are details you should know.
How can a company get Angel investing? Companies can connect to affiliated angel
investors by just asking companies connect to unaffiliated angel investors in much the same
way they connect to other people who can help them who they don't know or don't know well
by cold calling, advertising looking to business brokers working with intermediaries and networking.
How does the company find angel investors online? Try Gust they used to be called Angel Soft there
at www.gust.com they keep a database of investors companies and programs startups can
also search for business plan competitions and more. Let's look at working with Gust. When you
look up investment groups the information includes a profile with information on which industries they
typically fund. When you look up programs the information includes deadlines and basic
information like the dollar amount they fund and when you look up companies the provided
information includes a profile where the founders can add basic data and a pitch video. Gust gives the
search for angel investors more organization, but it's not the only way to find angels. Here are other
ways to find Angel investors. Entrepreneur magazine suggests sites like Funding Post and ACE
NET, they also suggest trying every possible investor because being turned down by 100
investors doesn't mean the one hundred and first will turn you down. Entrepreneur notes that angel
investors will often start small. So if you can prove your concept to them and they start to see success
they might add more funding. What are the biggest Angel Investor groups? according to entrepreneur in
order from smallest to largest New York Angels Inc. Alliance of Angels Seattle, Pasadena Angels,
Hyde Park Angel Network of Chicago, Band of angels in Menlo Park California, North coast angel
fund in Cleveland, Golden seeds LLC in New York City. Investors circle San Francisco, Tech Coast
Angels of Los Angeles, and Ohio Tech Angel funds of Columbus Ohio, groups focusing and
requirements vary. Some concentrate on local startups only, read up before you ask don't waste
yours or the Angels time if there won't be a fit. Now let's compare Angel Investors and Venture
Capitalists. Angels are not quite the same as venture capitalists. An angel investor will typically
invest in early-stage or startup companies in exchange for 20 to 25% return on the
investment. Angel investors tend to invest less and will also want less control than venture
capitalists into. Venture capitalists will also give money to help build new startups if the
VC's believe a company has both high growth and high-risk potential. They can be fast
growth companies with an exit strategy already in place, venture capitalists will often look
to recover their investment within a 3 to 5-year time frame. They will also often want
to own a larger piece of the company if not a controlling stake, people like Jeff Clavier do
both. Probably depending on the amount of risk and the expected amount of return. Let's recap
Angel investing decoded, Angels can be wealthy or not so wealthy investors, you might know them
before or not. They usually won about 20% return on their investments angel investors are great for
startups which cannot get other forms of funding, and they usually want a smaller piece of your
company than venture capitalists do. Contact us today to learn more about Angel investing decoded.