For starting up your own venture, you need two things importantly: Idea and Funds. Some people invest their personal funds or look for anyone who can invest in their business. If approaching a venture capitalist is on your mind, you should know it’s not a good option at the seed financing stage. We
suggest you go for the angel investors. An angel investor is someone who would invest in your new venture to provide funds for starting or expanding the business. He sees a potential in your idea and offers you his money in exchange of a rate of return on his investment.
Get the amount as per the requirement Most certainly, startups need a lesser amount to reach their early goals. Venture capitalists generally collect money from multiple sources to invest in your business and hence they look for investing a bigger amount. As in the case of an angel investor, they have an amount ready with them to provide you as per your smaller requirements as well.
Open to high-risk investments
Investing in a startup is regarded as a high-risk investment because there is no record or success or returns. It’s always a chance that new ventures don’t do so well in the initial years but it’s the angel investors that stay optimistic with them. Despite the high risks involved, they are keen to make the investment.
It was a time when investors were hard to find because the risk-taking capacity was not so much. Today, the angel investors can be found in all the markets and the good point, nobody is industry specific. Just like
the ventures, even the angels look for growth, no matter which industry or market is it.
Bringing more knowledge & Experience
Company members and investors with
Flexible business agreements
Unlike in case of banks and venture capitalists, angel investors don’t follow any traditional or formal way of investing. They offer their own money so they are also open to negotiations. Not just they are a great source of investment but also very valuable with their suggestions on your path to achievement.
See a bigger picture through them
Many angel investors look beyond just the monetary return and see a bigger picture unlike what the venture capitalists do. There are ventures through which even the society will benefit and this attracts the angels. By helping your venture, they will not just create more employment but will also aid the economic growth locally.
Summing it up, looking for an angel investor for your business is one of the best options to get funded.
Make sure you have well-drafted requirements and an agreement that states and meets the demands of both the parties. Angel investors have not just come with monetary benefits but other non-monetary gains as