Are you beginning a new company, or want to grow your current company? Angel investment might be a good solution for you.
“Angels” are skillful investors and generally are business people who do very well within the business world.
This means that they are able to give you something other than capital. They are able to give you words of wisdom that can help
you to build upon your business.
If you are looking for an angel investor, then you should be knowledgeable about how to contact these investors in the right manner.
In order to accomplish this, you must know what angel investors want and how they decide which businesses they will make investments in.
These are the key elements that angel investors want to see before they will make an investment:
1. An Outstanding Possibility for ROI
Angel investors will not invest in a company if they do not see a way to get their money back in return.
This is because they will be shouldering most of the beginning risk. Angel investors want to get back in return almost 100 times their original investment. According to the Center for Venture Research, angel investors on average will get back about twenty five percent on their original investments. However, a majority of angels are ready for the possibility that at least a third of their investments will not be successful.
2. An Association with the Business Owner
Angel investors generally like to be familiar with the owner before they put money into that person’s business. Due to this fact, plenty of angel investments are conducted between friends and family. However smart business owners know how to interact with those friends and family who can provide new opportunities to connect with other powerful business owners.
3. An Opportunity to Take Care of a Growing Business
Angel investors enjoy nurturing the businesses that they make investments in. Basically, this is because of the chance to help the new business grow, in addition to getting more money in the long run. A majority of angels are also very skilled businessmen. They know how to utilize their present customer connections to raise a new company’s capital raising potential. They might provide expert advice at all levels of operation from hiring new employees to building customer networks. Angels are especially interested in providing capital for a new company if they have been involved with that type of business venture in the past. This is the reason that angels search for businesses where they can provide their valuable expertise.
4. A Love for the Game
Then there are those angel investors who just want to be a part of the action and play the game. To them, investing in a new company is exhilarating. They like being able to watch it grow and become more profitable. They tend to find it much more exhilarating that putting money into the stock market, where the investor is not an active participant within the business.