As someone rightly said, “The net is not a net until it begins to work. Work your network today!” It may have worked for you in the past and it might work for you once more, but if you aim bigger be sure to work with one another. If you are looking to finance your company by means of an angel investment it might be a better idea to approach a group of Angle Investors rather than an individual investors and there are more than a few good reasons for this explained:
• More the merrier: If you approach an individual investor and if you get a positive feedback to your idea you are sure to feel good about it, however, if they have a difference in opinion it is always good to take a 2nd opinion just as we tend to do with our doctors. And who knows when he has a negative reaction he may be wrong about it!
• Many resources in a group: when you spill your beans and share your idea in front of a group you will get a mixed reaction. These angel investor groups have lot of different talent, people good in various fields, as they are a group of professionals. So you can get a lot of advice be sure to carry a notepad along! Treat this as a golden byproduct as it is often more valuable than the advice you don’t …
When I was in my college days studying management education, I used to think that Angel Investors and Venture Capitalists are two different bit of jargon thrown at you at different times to mean the same thing. Now that I am a management graduate, I understand that I was naïve to think that as there are certain fundamental differences which I am about to explain in the passage below.
I am going to break it down to you with the help of the following 2 simple examples:
Let’s say that your rich friend agrees to loan you an amount to help you get yourself a business up and running and you promise them that you will not only return them the amount back but you will pay them something more as a reward of their trust over you. If it fails then your friend loses money just as you lose your business. That the concept here.
1. Individual high net worth investors with personal net worth more than $ 1 million
2. They will generally put in their money when the idea has been converted to at least prototype or is in a beta phase
3. They generally agree to finance anywhere between $25,000 to $100,000
4. The due diligence done by angel investors can range from a basic background check to thorough research
5. They have higher risk as compared to VCs as there is a higher …