An angel investor is a private individual who provides financing to startups, usually in exchange for equity. Angel investors typically use their own personal net worth to finance investments, as opposed to a venture capital firm which uses an investment fund. Angel investors usually receive convertible debt or ownership equity in exchange for their investment.
What Are the Characteristics of a Good Angel Investor?
The best angel investors are those who are committed to the startups they invest in and exhibit empathy, engagement and encouragement during the businesses' growth. They are able to provide trustworthiness, good decision making skills, high integrity, patience and the ability to support and challenge entrepreneurs.
If you have these qualities and are interested in becoming an angel investor, do not hesitate to reach out to startups.
What are the benefits of being an angel investor?
The benefits of being an angel investor include having a positive impact on society, gaining a return on investment and becoming a mentor to young entrepreneurs. Angel investors often feel a sense of satisfaction from knowing they helped a business succeed. They may also get to be involved in interesting and innovative projects at the cutting edge of technology.