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Angel Funding/Venture Capital

Angel investors invest in early stage or start-up companies in exchange for an equity ownership interest. Angel investing in start-ups has been accelerating. High-profile success stories like Uber, WhatsApp, and Facebook have spurred angel investors to make multiple bets with the hopes of getting outsized returns.

Here are my thoughts on frequently asked questions from entrepreneurs about angel financing.

1. How much do angel investors invest in a company?

The typical angel investment is $25,000 to $100,000 a company, but can go higher.

2. What are the six most important things for angel investors?

Here is what angels particularly care about:

  • The quality, passion, commitment, and integrity of the founders.
  •  The market opportunity being addressed and the potential for the company to become very big.
  • A clearly thought out business plan, and any early evidence of obtaining traction toward the plan.
  • Interesting technology or intellectual property.
  • An appropriate valuation with reasonable terms.

Angel info courtesy of Richard Harroch, Contributor for Forbes.

Angel investors, like venture capitalists, also like to see an end game down the road that will allow them to pocket their winnings, whether it is a public offering or the sale of the company to a larger one.

Below are links to angel funding sources, as well as angel investor and venture capital groups:

Women the Next Wave of Angel Investors, Forbes