Typically, angel investors are men between the ages of 45 to 70 that have had significant business and industry experience. These individuals usually have a net worth of $1,000,000 to $5,000,000 and they are willing to make an investment of $50,000 to $250,000 into any specific business venture depending on the risk reward ratio that is associated with the company. Additionally, many of these investors want to be close to home as it relates to them providing money to a small business. As such, most angel investors want their investments to be within 50 miles to 100 miles of their primary location.
Although the angel investment industry is dominated by men, it is important to note that a number of female investors have entered into this industry. This is primarily due to the fact that women have become prominent business people and they want to be able to enjoy the same high reward returns that are associated with small business investing. Generally, investors that are women like to make investments into businesses that are primarily owned by women. 1133 angel number
You are always going to need to have a well drafted business plan when you are working with an angel investor or syndicated group of investors. We strongly recommend that you are able to put together a number of comprehensive documents as it relates to your business as how much equity that you are willing to sell as it relates to your small business investment. In many of our future articles, we are going to discuss the exacting need for a business plan when dealing with an angel investor.
It should be noted that while this is an overview of an angel investor profile, each and every individual that you deal with is going to have a different idea as to what they want as it relates to their investment. In many instances, these private funding sources are going to want a significant amount of control as it relates to your business. In some instances, angel investors tend to take a hand off approach as it relates to the day to day operations of your business. As such, you should negotiate very carefully as it pertains to raising capital from these types of investors.
One of the ways that you can profile your investor appropriately is by having them fill out an accredited investor form that showcases their ability to provide you with capital while concurrently understanding their needs as an individual investor. As we have discussed before, it is imperative that you are able to provide you outside funding source with the equity and ongoing stream of revenue that can be generated by your business as a return on investment.