An angel investor is someone who invests in a business venture by providing capital for start-up or expansion. They seek a high rate of return and enjoy a personal opportunity to get involved in a business. Often angel investors have business experience as well as money and will want to play an active role in managing a business.
Top angel investors receive hundreds of pitches, meaning a business needs to shine in order to get noticed. Investors are interested in competent and efficient businesses, run by balanced teams capable of translating ideas into commercially viable products and services. Demonstrating business competence and efficiency can position a business for attracting funding.
Among the qualities angel investors will be looking for are a sound business plan, a balanced team of key staff, and a supportive customer base. They also want to be confident that the products or services are going to be profitable over the term of their investment.
When it comes to the business ownerâ€™s personal characteristics, theyâ€™re looking for commitment, well-rounded business skills, and persistence and innovation.
Angel investors are often a good source of capital, especially for large growth and expansion projects.