What is Angel Investment and what are the Pitfalls?
An angel investor, or angel as they are commonly referred to in their particular business circle, are high worth and affluent individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. Combined with this they are also available to take a business to the next level. Although they provide what is known as venture capital they are wholly removed from venture capitalist all of whom tend to be professional money managers and use the funds of individuals, companies and other organizations to invest in businesses.
The only pitfall of having an angel investor onboard so to speak is that one has an “outsider” on the board, one who has a say in the company. However this is the same situation one would find if a venture capitalist fund manager was approached for funding or if the business was a publicly owned business; far from being a “pitfall”, having an angel investor on board is probably a boon which brings many benefits and potentially higher gain and reward. They have a personal investment in the business and therefore have a vested interest in seeing the business succeed, prosper and develop whereas a regular shareholder can jump ship any time they desire once a profit is made on the shares. Angel investment individuals tend to take a longer term view of a business and therefore adopt a more pragmatic approach and understand the issues a business can encounter and seldom run for cover at the first sight of a brewing storm.
Invariably when an angel investor is involved and the business plans have been formulated with meticulous care, seldom does a storm rear its ugly head; indeed it is a fact that more businesses in receipt of angel funding perform far superior pro rata than businesses which have received funding from elsewhere. It is not unusual for angels to form themselves into networks and/or syndicates and groups to exchange research data and pool their investment capital as and when the need arises.
Angels come from all walks of life but on the whole are often retired and their funding sources are far more reliable than other sources of investment, especially at start up stage where the risks can be high and normal lending sources tend to preclude themselves from the available finance source chain. To obtain access to angel investment from the business plans specialists at Funded.com without any of the pitfalls associated with business finance, contact them via their website. Working together they will be able to place entrepreneurs in touch with entrepreneurs all of whom have available funding for businesses just when it is required. For first contact the website address is http://www.funded.com.
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