Angels are, typically, ex-entrepreneurs and successful business people looking to add early stage companies to their investment portfolio. They enjoy the challenges of growing new businesses and being part of an exciting venture, as well as the financial rewards from investing. They provide not only governance by serving on boards, but also assisting companies with relationships, strategy, team building, and future fundraising.
Angel investors are exposed to high rewards and high risks, and expect that some investments will fail. If an angel invests in ten companies, the general rule is that four will fail, three will tread water, two will return 2-5 times the initial investment, and one will result in a return of five to ten times the original investment over a 5-10 year period, generating an overall healthy return across the portfolio.
Increasingly, angel investors are forming angel networks and groups to share research and pool their investment capital.
(Acknowledgement: NZ Venture Investment Fund)
Angel investors are high net worth individuals or business people who make high-risk, potentially high-yield investments in start-up companies or small businesses looking to expand their market opportunities. Angel investors typically focus on companies that have already developed a basic concept and business strategy, and are in the seed stage of investment. An emphasis is placed on business enterprises with the potential for rapid growth.
(Acknowledgement: West Virginia Angel Investor Network)
Angels are accomplished entrepreneurs who wish to make early stage investments in, and perhaps provide mentoring or advice to, new companies. An ideal angel is someone who has run a successful technology venture. Investment amounts will vary greatly, but typical angel investments are in the $5k to
$50K+ range. Often, several angels will invest in a company either as individuals or via nominee companies.
(Acknowledgement: Okanagan Angel Network, BC)