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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?

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1. To make money
2. Like the problem that your are trying to solve
3. They know the founder
4. Connections with other investors
5. Learn about a field

The Types of Angels

These investors are categorized based on the money they are able to invest.

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1. The Broke angels

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• Invest only about 5,000 to 10,000

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1. Syndicates

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• able to put around 25,000 to 250,000
• generally the best ones

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1. Family Offices

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• can place 50,000 to 250,000

Assessing their value add

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1. VC network- angels with LARGE VC networks can make fundraising way easier
2. Strategic advice- experienced angels can help accelerating growth
3. Distribution- S&M- angels with unfair GTM access can help you get more traction

You should also find what stage they invest in

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1. Do they want a lead?

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• if they want a lead regarding the startup, ask them right away

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1. Corporate angels vs. startup angels

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• corporate angels are risk adverse they demand more revenue
• startup angels are real angels. They only want more vision and innovation within your business.