Business Finance

Resources for becoming an angel investor

angel investor

Becoming an angel investor is an increasingly popular option for people looking to invest in businesses, but also care about more than just a quick buck. Many angels are passionate, experienced startup folks themselves. Here is a very basic overview and some resources on becoming one yourself.

angel investor

Businesses need more than just funding

Business owners search high and low to obtain financial assistance when trying to start a business. Many can go through traditional lenders if their credit is in good standing, but sometimes applicants don’t receive the full amount asked for, or they are denied altogether. Seeking a mix of traditional lenders and angel investors is a great option to traditional lenders, because angels are always actively searching for promising projects to invest in. And for those who choose to don the wings and become an angel investor for a deserving company, the decision can reap huge rewards.

Angel investors benefit from providing their own personal capital to businesses by offering it in exchange for a percentage of the company. If investors do their research and pour into a company still in its early stages that eventually scales upwards, the ROI can be highly lucrative. Best of all, both parties involved can leverage this mutually beneficial relationship. Investors make back their initial investment plus a profit, and become part of a company on its way to doing great things; and startups receive sizable investments needed to get the business started and ready to go

Resources for becoming an angel investor

One of the most popular investor sites is Kickstarter, where users can put funding towards product launches and companies that they’re interested in. However it should be noted that the site leans more towards crowdfunding than a typical angel investment, as donations do not result in partial ownership of the company.  

Angel List is a platform made to easily connect investors with startups, and send funds to the companies of their choice. The Angel Capital Association and Angel Resource Institute are fairly large organizations where investors are surrounded by a group of peers, all dedicated to helping businesses succeed.

Gust is an angel network that operates on a global scale, however there are more localized options as well, depending on where you live. For example, angels in the Lone Star State can check out the Central Texas Angel Network for new investment opportunities.

If this is your first time being an angel investor, FundingPost has been around for quite some time and can provide a wealth of resources for interested angels.

Angel investing can be about so much more than just putting a dollar in and getting a little more than a dollar out – learn about the angel investor culture before taking the dive.

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