How Angel Investor Helps A Start-up To Grow

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How Angel Investor Helps A Start-up To Grow
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Introduction

• An angel investor is an individual who finances a
  new or small business investment, giving equity
  to a start-up. Angel investors are generally
  individuals who are looking for a higher rate of
  return than what would be given by traditional
  investments. An angel investor typically looks
  for a return of around 25 to 60 percent.

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Types of Angel Investors

• Friends and family This is the most popular
  source of funding for startups and is usually
  where startups begin t0 look for financing.
• Wealthy individuals Depending on the company,
  people who have a high net worth, such as
  doctors, lawyers, or successful business people,
  are often willing to invest a large sum of money
  in exchange for capital in a business.
• Groups Many angel investors are increasingly
  starting to operate as part of a group. This
  raises the potential for the level of investment
  significantly.
• Crowdfunding This type of funding is becoming
  increasingly common. It implicates having huge
  groups of people invest small amounts of money
  online to reach a specific financial goal.

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A PICTURE IS WORTH A THOUSAND WORDS
Advantages of Angel Investors
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01

• The greatest advantage of receiving funding from
  an angel investor is that there is less risk than
  if you take out a small business loan. Unlike
  loans, you do not have to pay back the funding
  from an angel investor because they receive
  equity in exchange for financing.

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02

• Angel investors are typically experienced
  investors who take a long-term view and
  understand that they may not see a return on
  their investment for a long period of time.

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03

• Angel investors have a lot of business
  experience, they can provide mentorship for the
  startup. Their rich experience in the field of
  entrepreneurship and investment is the reason
  behind their perfection.

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Other benefits that a startup gets by taking on
an angel investment include Credibility from
being associated with the investor. Contacts
for potential customers or employees. Contacts
with investment bankers, accountants, lawyers and
other professionals. Marketplace knowledge and
strategies used in similar companies
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Key Takeaways

• An angel investor is usually a high-net-worth
  individual who funds startups at the early
  stages, often with their own money.
• Angel investing is often the primary source of
  funding for many startups who find it more
  appealing than other, more predatory, forms of
  funding.
• The support that angel investors provide startups
  fosters innovation which translates into economic
  growth.
• These types of investments are risky and usually
  do not represent more than 10 of the angel
  investor's portfolio.

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Conclusion

• Angel investors collectively invest millions in
  startup and entrepreneurial ventures every year,
  they are usually the first outsiders to supply
  startups the much-needed equity to kick start the
  startup business. Here we have listed few
  benefits that startup gets by taking on an angel
  investment. Angel investors who seed startups
  that fail during their early stages lose their
  investments completely.

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• Thank You