If you are still new in the startup business and want to know more about angel investors, well I gathered some foundercafe.io information to get you started :-)
Angel investors are indeed lifesavers for smaller startups. They do that by investing money in exchange for a small percentage of equity. Because of them some businesses are able to have funding to start and grow eventually.
However, you must give the investor a reason WHY they should invest in you. After all why would an investor ever give large amounts of money to someone for no reason at all?
Why do angels invest?
- To make money
- Like the problem that your are trying to solve
- They know the founder
- Connections with other investors
- Learn about a field
The Types of Angels
These investors are categorized based on the money they are able to invest.
- The Broke angels
- Invest only about 5,000 to 10,000
- Syndicates
- able to put around 25,000 to 250,000
- generally the best ones
- Family Offices
- can place 50,000 to 250,000
Assessing their value add
- VC network- angels with LARGE VC networks can make fundraising way easier
- Strategic advice- experienced angels can help accelerating growth
- Distribution- S&M- angels with unfair GTM access can help you get more traction
You should also find what stage they invest in
- Do they want a lead?
- if they want a lead regarding the startup, ask them right away
- Corporate angels vs. startup angels
- corporate angels are risk adverse they demand more revenue
- startup angels are real angels. They only want more vision and innovation within your business.
Just commenting to keep it in my comments. Will be back later with questions.
No, angel investors aren’t angels and it’s not obvious they are “indeed life savers”.
Spam post, do you also want us to sign up to your course?