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Profile With the Typical Angel Investor

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We first heard the phrase "angel" in early 1900's used to describe investors on Broadway who dedicated to theatrical productions. Today it describes high net worth people who are "accredited" investors beneath the SEC rule 501 who invest in companies at the begining of stage rounds of growth.

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Angels have investable funds from one million dollars or maybe more. Another criteria of these individuals is because they earn a lot more than $200,000 each year to turn out to be a certified Investor. They might not just invest financially but tend to provide advice and benefit taking your company to another level.

Over the past decade Angels have already been favoring we now have sector but have not been limiting themselves just to that one sector. Land Development as well as the Biotechnology areas have already been consistent and actually have experience growth within the last 10 years with land or Asset backed ventures only seeing fluctuations using the subprime property debacle.

With all the Growth capital Firms finding larger deals to purchase a gap began to emerge for smaller funding niches which has been consistently expanding and consequently more angels have been emerging on the global scene. This with the technology expansion inside the Information Age it's got made finding deals easier for Angels who're always trying to expand their deal flow.

Angels normally fall under four categories:

1. Guardian Angel

2. Professional Entrepreneur Angel

3. Operational Expertise Angel

4. Financial Return Angel

Guardian Angels are active investors that guide and coach the management team that you'd have in position. Because Guardians invest a lot time into projects they have a tendency to take on a reduced number of deals (2-4 deals annually). Of these investors a purchase range is normally between $100,000-$150,000 per company and in the post deal phase they are to obtain a seat in your Board.

Professional Entrepreneur Angels are often those individuals that have more than cash but industry background experience through starting similar businesses before. Yet what we should have discovered is that they explore other industries to buy in line with the prospect of very high returns.

These players have developed into full time angels. These Angels tend to be more patient investors as a result of knowning that there are certain launch stages and milestones that have to be reached before outcomes of success are apparent.

Operational Expertise Angels have served as senior executives in the chosen field they focus their investment portfolio on. These are the basic Angels that other Angels consult for suggestions about deal quality and due diligence. These are the Angels you would like to dress in your Board when it is time and energy to type in the later stage of Equity Funding with Venture capitalist since they're seen as an plus towards the management roster.

Lastly will be the Financial Return Angels who have little entrepreneurial experience or industry experience. These are generally investors who made their funds through other fields like doctors and lawyers that are just searching out investments which will have preferred tax treatment with minimum involvement on the part. Professional Investors tend to stay away from deals that have to many Financial Return Angels because of the impatience and fear in market downturns. These Angels would be the least likely to provide you with rigid conditions and terms just like the institutional/professional investors would.

Last updated 899 days ago by AccreditedInvestors2