Suitability

Is my company suitable to attract angel Investors?

Companies that are suitable to present are typically:

early stage companies with a significant commitment already made by friends and family.

have intellectual property such as patents or trade secrets that create barriers to entry

alternatively have a good business proposition that gives investors a good return for their investment
e.g.: ice cream shops in Texas, hot chocolate machines in Iceland

have significant potential for growth

have good management team planned or in place

have an exit strategy

have a value proposition for the angel investors that is commensurate with the risk and competitive with alternative angel investor opportunities

Lifestyle and local retail are typically “friends and family deals” not suitable for an angel investor group. However they are often suitable for one or two angels so we will take a look at them and refer them to our members where appropriate.

Are Angel Investors suitable as investors in my company?

Many angel investors are cashed out ceo’s and /or successful entrepreneurs.

Most angel investors are in the age range of 45 – 60 and bring considerable experience and rolodexes to die for.

Angel groups have tremendous diversity and therefore there will be a lot of domain expertise available.

Angels make their own decisions – it’s their money (unlike VCs who are professional money managers).

Being experienced entrepreneurs/executives themselves, angels know the business plan will be constantly modified (been there, done that) . They therefore understand business problems and can help/advise when adversity appears.

Most angels are motivated by helping the next generation of entrepreneurs – it’s in the blood!

The majority of angels typically invest $50,000 to $100,000 per deal with some investing as much as $250,000.

Most angels like to get into deals of a size between $500,000 to $1.5 million to take them to the next step of valuation or positive cash flow.

Angel investment bring credibility and networks especially if they are on the Board of Directors or Board of advisors.

Angels come in after “Friends and Family”.