| Angel investors are individuals who invest in emerging | | | | venture capitalists. They want to see proprietary |
| business ventures. Angels typically provide both | | | | intellectual property, a large market size, |
| capital and know-how to companies who are in either | | | | management team members with expertise and |
| their start-up or expansion phases. To reflect the | | | | experience and a current valuation that allows for a |
| increased risk of investing in such firms, angels seek a | | | | good return on investment. |
| higher rate of return versus traditional public stock | | | | In identifying and attracting an angel investor, |
| investments. | | | | companies should seek angel groups that are located |
| Angel investors fulfill the financing need that exists | | | | in their region. For instance, the Tech Coast Angels |
| between capital provided by friends and family and | | | | have funded over 85 Southern California-based |
| capital provided by venture capitalists. Individual angel | | | | companies since 1997. When seeking individual angel |
| investors often write checks from $25,000 to | | | | investors, it is critical to network in order to create a |
| $100,000. Recently, angel investing has become more | | | | personal connection between yourself and the angel. |
| organized, and angel groups often invest from | | | | Also, ideally the individual has experience within your |
| $250,000 to $500,000 at a time to deserving | | | | specific field so he/she can provide industry contacts |
| ventures. | | | | and operational expertise in addition to capital. |
| Angel investors often have similar financing criteria as | | | | |