Angel investor..basic properties

Before we talk about the characteristics of the angel investor, we must first know who he is. How does it provide support and assistance to beginners? Then it becomes easy to know its characteristics.

An angel investor (also known as an angel financier) is an individual with a high net worth who provides financial support to small beginners or entrepreneurs, usually in exchange for shares in the company.

Angel investors are often found among the family and friends of an entrepreneur. The money offered by angel investors can be a one-time investment; To help the company rise or it can be an ongoing support to support and assist the company through its difficult early stages.

Also read: Financing Programs in the Kingdom .. Overcoming Obstacles for Entrepreneurs

Features of the angel investor

monitors «Entrepreneurs»Some of the characteristics of the angel investor, as follows.

Most professional angel investors invest as part of a team; This ensures that when investing in a company, a comprehensive assessment and validation of the business model is carried out jointly.

Collectively, angel investors are guided by the experiences of many successful and already successful companies, so entrepreneurs get the resources and advice that these investors bring with them, but it is important to remember that they will only work behind the curtains and never play a visible role.

Also read: Investment rounds for emerging projects..stages and resources

  • Extensive experience

The successful angel investor has for the most part a lot of knowledge and experience; However, by working closely with many companies, they remain very motivated to learn new things.

It makes them a trusted pool of knowledge and brainstorm for entrepreneurs who can benefit from it; By regularly consulting with them about their business plans.

  • Strategic planning

Investing in a business with an unpredictable future is quite a risk and certainly not an easy decision. While angel investors are willing to take this risk, in most cases they have a project strategy in place to be able to generate healthy returns.

It is important for any entrepreneur to understand business strategies with the assumptions and expectations of investors to avoid different opinions at any stage. This can only happen through ongoing discussions and consultations.

Clearly, an angel investor will not invest in a project until he is fully convinced of the potential for profit, but he will not necessarily ask, and it is important for the entrepreneur to answer the questions posed in their thoughts may be. There are some basic criteria by which they evaluate business models that an entrepreneur must meet in order to persuade the angel investor to support and promote their company.

angel investor

Also read: Important secrets about car financing … What is it?

  • Intervene at critical times

An angel investor is a wealthy person who has enough experience in a field, and wants to invest his money to save a company from its stumbling block and push it forward; Angel investors often do not enter the project from the beginning, but, as Gerald A. Benjamin and Joel Margulis point out in their joint book The Angel Investor’s Handbook, they come at a later stage, this stage may be the company’s desire to to obtain another. company, or the desire to acquire another company In the transition from profit to loss, the angel investor can enter at that stage where the project needs some funds for a short-term period.

So it can be said with the authors of The Angel Investor’s Handbook:

“These wealthy individuals provide entrepreneurs and new ventures with the necessary venture capital, especially when traditional sources of capital, such as investment banks and venture capital firms to manage the larger funds, are not willing to get involved.”

Also read: Home Business Financing .. Ways and Options

When all the doors are closed in the face of entrepreneurs, and when they do not get an answer or an answer to their request for financing, they should knock on the door of the angel investor, as it is possible that they will find what they want with him.

The angel investor is not in a hurry to make a profit, but is patient and knows that he has decided to put his money into projects that will not enable him to recover these funds quickly; That is, angel investors work for the long term.

Unlike venture capitalists – who often invest with other people’s capital because of their experience and expertise – they work in projects where the level of risk is very high. Perhaps this is one of the reasons why angel investing is the most suitable financing method for entrepreneurs and beginners. Many of these projects, especially if they are in their embryonic stage, are very risky and ambiguous, but the angel investor is not in a hurry to make a profit or get his money back.

Also read:

Property Financing Secrets .. 4 Basic Information

Funding success .. Do you know the way?

Financial security of projects .. Access to security

Personal Finance .. Domains and Strategies

Financing environmentally friendly projects … the available options

Short link:

Leave a Comment