Angel Investor Definition
Angel investors are one of the financing options you can look at when you decide to start your own business venture. Starting a business is not only a very important process, it also requires a lot of time, effort and of course money. If you don’t have the money needed to finance your business, how can you start your operation? Therefore, when you start planning your business venture, you need to carefully assess your capital. And if you don’t have a large amount to start with, you can rely on angel investors to provide you with capital. But before you look for an angel investor, you should make sure you understand the definition of an angel investor.
Angel investors are high net worth and accredited individuals who provide financial assistance to future business owners who need start-up money. They are well educated, have valuable experience in the business world and have a large amount of money that they invest in exchange for ownership capital. They are often the best financing option in the early stage of a business. Today, many people choose to become angel investors. Therefore, when you start looking for the right angel investor, it is important to know the definition of each type of angel investor.
Corporate Angel Investor Definition
Corporate angels are former company executives who have retired early or have been replaced. While one of their goals is investment, they are also looking for personal opportunity. Therefore, they often want to obtain a position in the business as part of the deal. However, this should be discussed thoroughly as some corporate angels can be too controlling.
Entrepreneur Angel Investor Definition
Entrepreneurial angels are successful business owners themselves. Unlike corporate angels, they can take bigger risks and provide larger amounts of money because they have a regular source of income. These businessmen usually want to help future business owners get off to a successful start and eventually build a competitive business. The biggest advantage of these angels is that they are less demanding and allow the business owner to grow on their own, they are only as financial support.
Definition of Curious Angel Investors
Curious angels are retirees who enjoy being involved in different business deals and transactions. They are mostly over 65 years old and are already wealthy even before starting their own business. Just like entrepreneurial angels, they do not want to play any role in business management.
Micro Management Angel Investors Definition
Micromanagement angels are individuals who have made their own efforts to get rich. Because of their experience, they believe they know exactly how a business should be run. Although they are not active participants in management, they can be very visible when the business management starts having problems and is not going well.
Definition of a Professional Angel Investor
Professional angels are lawyers, accountants and doctors who want to invest in companies that offer a service or product in which they have little experience. Their main goal in investing is to also be hired by the business as advisors in their area of expertise.
These are the different types of angel investors you may come across when you start looking for the right angel investor for your business. By keeping these angel investor definitions in mind, you can easily decide which one is right for you.
