The angel investor is looking to do business with other business people. Their interest is in investing with a chance to grow with the business and what it might mean for them. They are investing billions of dollars in thousands of companies today (Bell, 2007). Exploring what the angel investor is and why they invest will give some answers as to why they might be a good partner. What makes an offer attractive to the angel investor, and the differences between angel investors and venture capitalists will show more information of their pros and cons and give ideas to the business person who is looking for an investor. Is an angel investor a good fit for the entrepreneur will be exposed by delving into this information.
What is an Angel Investor, and why do They Invest Angel investors look for opportunities to grow their own business involvement by attaching themselves to new and/or growing businesses. They are a growing section of investors these days partly due to the fact that starting a technology company is a fraction of what it once was (Strebulaev, 2013). Technology is big these days and it is easy to see with all the new gadgets that hit the market. Angel investors are not strictly gamblers spinning a slot machine, they can have specified knowledge and/or have started their own business already and therefor be invaluable to the entrepreneur (Strebulaev, 2013). They might know about legal, advertising, and/or a wealth of things that the new business venture would consider an asset. It might sound like a scary idea to invest in a new business, but that is what angel investors do. They do it to make money, and with their knowledge backing them, have a feeling that they know the idea will fly and give them a substantial return (Bell, 2007). They already have a good idea what is going on in the business world and would not take chances on an idea they think will falter. Some reasons they might invest are to support their piece of the earth, for the thrill associated with it, or a wish to further their own knowledge (Bell, 2007). So they might enjoy gambling with an ace in their pocket, or just want to support the idea of entrepreneurship for a better tomorrow. What Makes Offers Attractive to Angel Investors, and how are They Different From Venture Capitalists Angel investors are looking for certain types of things which might already be evident from understanding their background. If they have …show more content…
Angel investors might belong to a group of other angels in an attempt to pool their resources, and are mainly interested in start up businesses (Funds and financial, n.d.). One difference might just be where the business is at to draw attention from an angel investor as opposed to the venture capitalist. The venture capitalist could be more interested in where the company is at developmentally, and have studied the business model before they will invest (Funds and financial, n.d.). The venture capitalist might be willing to invest, but not without doing their homework. The venture capitalist could be willing to invest more money than the angel investor, but they will be using other peoples money where the angel investor will typically be using their own (Bell, 2007). It stands to reason then that the angel could afford to be a gambler, where the venture capitalist could
What is an Angel Investor, and why do They Invest Angel investors look for opportunities to grow their own business involvement by attaching themselves to new and/or growing businesses. They are a growing section of investors these days partly due to the fact that starting a technology company is a fraction of what it once was (Strebulaev, 2013). Technology is big these days and it is easy to see with all the new gadgets that hit the market. Angel investors are not strictly gamblers spinning a slot machine, they can have specified knowledge and/or have started their own business already and therefor be invaluable to the entrepreneur (Strebulaev, 2013). They might know about legal, advertising, and/or a wealth of things that the new business venture would consider an asset. It might sound like a scary idea to invest in a new business, but that is what angel investors do. They do it to make money, and with their knowledge backing them, have a feeling that they know the idea will fly and give them a substantial return (Bell, 2007). They already have a good idea what is going on in the business world and would not take chances on an idea they think will falter. Some reasons they might invest are to support their piece of the earth, for the thrill associated with it, or a wish to further their own knowledge (Bell, 2007). So they might enjoy gambling with an ace in their pocket, or just want to support the idea of entrepreneurship for a better tomorrow. What Makes Offers Attractive to Angel Investors, and how are They Different From Venture Capitalists Angel investors are looking for certain types of things which might already be evident from understanding their background. If they have …show more content…
Angel investors might belong to a group of other angels in an attempt to pool their resources, and are mainly interested in start up businesses (Funds and financial, n.d.). One difference might just be where the business is at to draw attention from an angel investor as opposed to the venture capitalist. The venture capitalist could be more interested in where the company is at developmentally, and have studied the business model before they will invest (Funds and financial, n.d.). The venture capitalist might be willing to invest, but not without doing their homework. The venture capitalist could be willing to invest more money than the angel investor, but they will be using other peoples money where the angel investor will typically be using their own (Bell, 2007). It stands to reason then that the angel could afford to be a gambler, where the venture capitalist could