CARTOONS BY CHRIS BRITT
StartUp_Wisdom_online2
StartUp_Wisdom_online2
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– ANGEL INVESTORS –<br />
A century ago, New York playwrights on shoestring budgets found angels waiting in the<br />
wings: wealthy and visionary individuals who would finance their productions, hoping<br />
to make a healthy return on their investment. Today, angels are usually business people<br />
who have made their fortunes in other businesses. In most cases, angels invest in early<br />
stage companies<br />
and startups, though<br />
they may also<br />
invest in established<br />
companies. Their<br />
investment amounts<br />
are lower than venture<br />
capitalists, since they<br />
are investing their<br />
own money. As such,<br />
they might expect a<br />
significant return on<br />
their investment and<br />
also want to have<br />
input on the direction<br />
An angel is someone you feel like you’ve known forever . . .<br />
even though you’ve just met.<br />
the company is taking. As part of the deal, they may require strict budgets and sales<br />
goals and even take on some role in managing the company. Their goal is to take your<br />
company to the next level where a venture capitalist would show interest. Funding can be<br />
a one-time injection of seed money or ongoing support to carry the company through a<br />
specific period of time.<br />
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