Halo venture capital is a reference to the growing popularity of angel investors in the venture capital marketplace. The halo is a direct reference to the halo of the angel and has even been used by one noted company as its official name.visit my latest blog post at http://www.americaschoicecredit.com/what-it-takes-to-attract-venture-capital/
Angel investors prior to World War II were most often friends and family of the entrepreneurs who invested their own capital for business start-up projects. The amount of equity and management control they demanded in return varied from investor to investor. They were playfully referred to as 3 F investors. This meant family, friends, and fools. Today, angel investors are not usually family or friends, and they are certainly not fools. Halo venture capital is a term used to describe the investments of angel investors.
Angel investors differ from normal venture capitalist mainly in the fact that they invest their own funds while the VC invests the funds of investors that have pooled their resources in a venture capital fund. The fact that the “halo investments” are private funds allows the angel investors to fund smaller companies that are usually below the deal limits of the venture capital fund managers. However, this does not mean that the angels are limited to smaller deals.
The angel investors are willing to take more risks, in fact, than the venture capital fund managers. Despite the fact that the very nature of venture capital entails …
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 …