new version available

Newsletter Sign Up

Please enter your email to receive FREE venture capital and private equity special offers, news, and information!

Your Name: 

Your Email:  

November 30, 2012

What are angel investors?

Angel investors are, quite frankly, the best friends of those who are just starting up new businesses. These businesses have a need to look for seed money in lots of different places. When the owners of these businesses have exhausted all of their conventional options—such as using their own funds or borrowing from friends and family—they usually look to angel investors. Angel investors come in handy a lot when new businesses fail to get either venture capital funds or ordinary bank loans.

==> Click here to raise money from Angel Investors!

The role of an angel investor is as follows. He or she simply dips into his or her own funds to contribute to the money required to start up a business. In exchange for this capital, the angel investor receives a portion of ownership in the new company, which can be as little as 10 percent or even as high as 30 percent!

An angel investor usually gets involved with investments that are pretty risky. As such, he or she frequently chooses companies that possess a good expectation of returning approximately 10 times the initial investment in just 5 short years! Some angel investors might even be more aggressive and search for companies that can feasibly give them a return of between 20 and 30 times their initial investment. Much of the time, he or she will only receive approximately 20 to 30 percent profit on any advance capital, yet this is still seen as sizable.

Diversification is key to being a successful angel investor. It is not uncommon for said investor to put money into more than one startup business. If the new business in which the angel investor puts money into fails, his or her money will be unrecoverable. A person who is an angel investor is already sufficiently wealthy to be able to invest a lot of money with a very high risk of loss. Even if the angel investor loses the startup money in a bad investment, he or she can frequently still claim it as a tax write-off.

==> Click here to raise money from Angel Investors!

Peter

Comments

Facebook comments:

Visit our profile page on Facebook:
//www.facebook.com/vcgate.investors.directory
( and click Like if you like :-) )

Got Twitter?
Then Follow us @ //twitter.com/vcgate 



Share This Post:  

Try out our Venture Capital Firms
and Angel Investors
database for FREE!

Enter your name and valid e-mail address to download our FREE
investor database trial version, then click the "Get It Now!" button

Your Name:    

Your Email:     

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close

X

Enter your name and valid Primary Email Address below now to download our FREE trial version, then click the "Get It Now!" button to start the downloading.

Your Name: 

Your Email: 

NOTICE: This is a spam-free site. Your email address will never be sold or traded and you may unsubscribe at anytime.

Tip: VCgate gives you access to 4,500+ venture capital and private equity investors worldwide at the touch of a button.