What is an Angel Investor?
Angel investors are wealthy individuals who invest in high risk, early stage ventures and businesses through participation in equity. Their goal is to achieve higher returns than the typical public markets provide. Most angels are active investors, who contribute their time and experience. They also offer introductions to valuable contacts essential to the company’s success because they enjoy the thrill of helping entrepreneurs grow their businesses. To maximize the value added, most angels specialise in industries, sectors or technologies they understand.
What is an Angel Network?
Angel investor networks or groups vary in structure, from formal to informal. Formal groups follow strict participation requirements that guide members’ minimum and maximum investment activity and event attendance. Some groups pool members’ capital to make investments on the group’s behalf, while others do so only by allowing individual members to invest in specific investment opportunities of interest.
What do Angels look for in companies?
Angels invest in companies that offer excellent opportunities for high returns on investment. This usually implies companies with the potential to achieve high growth, strong market position, and sustainable advantages. Angels generally invest in companies that they believe have the potential to grow substantially over the next three to five years. This should be in either a developing market or in an existing market with national scope.