| Yes, "angel investors" are literally agents of blessing - | | | | investment compared to most investments. |
| affluent people who invest on start-up business | | | | Hence, most investors invest their sum of money to |
| owners. What is an angel investor, one may ask. To | | | | "semi-charitable" causes to sort of justify the leeway |
| some people, they are known as a business angel or | | | | given to the expenditure. Most companies in the |
| informal investor. One thing is certain first of all, they | | | | United States do secure angel funding. These |
| exist in the business world. | | | | companies range from software industries, health |
| There are a number of websites or business | | | | care services, medical services and equipment |
| directories which grant a small entrepreneur some | | | | providing companies. |
| ideas of possible financiers for his business. It should | | | | Since investors enter into a high-risk situation by |
| be noted though that financial funding provided by | | | | choosing to fund start-up businesses, they usually |
| "angel investors" is neither pure donation nor charity. | | | | require a very high return on investment - typically an |
| The amount invested by these angel investors are | | | | amount 10 or more times higher than their original |
| expected to be profited from at a later time through | | | | invested amount. Typically, they expect this return in |
| debt payment or ownership equity. | | | | a period of five to seven years. Since they are |
| Given such set-up, it must be important for a | | | | aware of the potential loss as well, given the |
| start-up retailer to ensure that his small business has | | | | "unstable venture," angel investors require a defined |
| the makings of a seriously potential success story, as | | | | exit strategy from the entrepreneur which includes |
| the amount of investment of an angel investor, is | | | | possibility of public offering or acquisition. |
| dependent on this factor. Compared to venture | | | | There is no sure formula in meeting angel investors |
| capitalists that pool together money from various | | | | to invest in one's business. Oftentimes though, one |
| investors, an angel investor, typically invests his own | | | | may expect very wealthy retired entrepreneurs or |
| funds. | | | | company executives, to be interested in angel |
| The amount given by investors, called the angel | | | | investing for reasons beyond monetary benefits. |
| capital, is usually used as seed funding for the | | | | Commonly, there are types of angel investors who |
| business to sustain the start-up financial costs of | | | | keep themselves linked to an industry they have |
| running the business. Usually, angel investors are | | | | worked for, as such remains close to their hearts. |
| family and friends of the entrepreneur. Should this | | | | This is their way of maintaining relations and updating |
| not be the case, one thing remains consistent, trust | | | | themselves of current developments in a specific |
| and faith in the entrepreneur is a strong factor prior | | | | business arena. Otherwise, their "angel investing," is |
| to the surrendering of the angel capital to the aspiring | | | | something they consider as a form of mentoring |
| businessman. | | | | another generation of entrepreneurs. After all, should |
| There is no specific and standard amount prescribed | | | | they provide the seed capital, they will inevitably get |
| as angel capital. They can range from a few | | | | involved in the project; thereby allowing that they |
| thousand, to a few million. Given such, it is usually | | | | get to use their experience and networks, which |
| expected by angel investors that their "loaned" | | | | somehow yields personal satisfaction and reward. |
| amount would not yield immediate return of | | | | |