If you’re facing difficulties getting funding for your startup, you’ll be glad to know about the power of Angel investments and their world. Angel investors invest in the start-up businesses while exchanging for an equity ownership share. Some of the most successful startups like Facebook Uber, WhatsApp have driven angel investors to make the investment with the hope of getting desired returns. Some angel investors are only concerned about the opportunity to spend in business in order to improve local economic growth, while others are only enthusiastic about the monetary gain.
Origins of Angel Investors
The term “angel” originated from the theaters when wealthy people invest money to help theatrical productions. It was first adopted by the University of New Hampshire’s William Wetzel.
Angel investment can be an ideal option for businesses that are established enough, but they need capital to improve a product or support their marketing strategy. Many companies look for the angel investors already have some revenue, but they want some money to kick their business to the next level.
Flexible business agreements
Angel investment basically have a more open investment criteria compared to the other traditional financial trends i.e. banks and venture capitalists. Because angel investors are investing their own capital, thus business deals can be negotiated. Due to this flexibility, they are probably the great source of money for early-stage businesses.
Most angel investors have helped various successful startups under their leadership so they have a vast experience of business tactics. Therefore, they do not only provide the required capital that a startup need but they also offer significant support and contacts help you in growing your business.
Before approaching to any angel investor, you should consider whether another kind of finance that could better meet your business needs.