Angel investing
Angel Investing: Frequently Asked Questions
What is an Angel Investor?
An angel investor is a high net worth individual who invests his or her own money directly into an early stage company, in return for equity (ownership) in the company.
In addition to providing financial capital, angel investors mentor and coach their portfolio companies, and help fill in functional or skill gaps in the company. They introduce the companies to other investors, and to colleagues who may be able to increase the company’s value. Most angel investors are entrepreneurs who have exited one or more businesses. They often invest in companies for reasons that go beyond monetary return. This may include staying in touch with new business developments, mentoring another generation of entrepreneurs, helping to run a company without the usual stress of day-to-day operational issues, and giving back to their communities by leveraging their skills.
Typically, angel investors invest in new, innovative companies that are highly scalable, that can quickly grow revenue and value. They primarily invest locally, so that they can stay in personal contact with their companies.
The term “angel” originally comes from Broadway, where it was used to describe wealthy individuals who provided money for theatrical productions. In one notable early angel investment, Harry Frazee, owner of the Boston Red Sox, used the proceeds from selling Babe
Ruth to the Yankees (resulting in the curse of the Bambino) to finance a Broadway musical.
The Center for Venture Research estimates that angel investors invested $19B in more than
55,000 startup businesses in 2008. Many successful large companies were started with angel backing, including Google, Yahoo, Amazon, Starbucks, and Facebook.
What’s the Difference Between Angel Investors and Venture Capitalists?
Angel investors generally are investing their own money, unlike ventures capitalists (VCs) who manage the pooled money of others in a
What is an Angel Investor?
An angel investor is a high net worth individual who invests his or her own money directly into an early stage company, in return for equity (ownership) in the company.
In addition to providing financial capital, angel investors mentor and coach their portfolio companies, and help fill in functional or skill gaps in the company. They introduce the companies to other investors, and to colleagues who may be able to increase the company’s value. Most angel investors are entrepreneurs who have exited one or more businesses. They often invest in companies for reasons that go beyond monetary return. This may include staying in touch with new business developments, mentoring another generation of entrepreneurs, helping to run a company without the usual stress of day-to-day operational issues, and giving back to their communities by leveraging their skills.
Typically, angel investors invest in new, innovative companies that are highly scalable, that can quickly grow revenue and value. They primarily invest locally, so that they can stay in personal contact with their companies.
The term “angel” originally comes from Broadway, where it was used to describe wealthy individuals who provided money for theatrical productions. In one notable early angel investment, Harry Frazee, owner of the Boston Red Sox, used the proceeds from selling Babe
Ruth to the Yankees (resulting in the curse of the Bambino) to finance a Broadway musical.
The Center for Venture Research estimates that angel investors invested $19B in more than
55,000 startup businesses in 2008. Many successful large companies were started with angel backing, including Google, Yahoo, Amazon, Starbucks, and Facebook.
What’s the Difference Between Angel Investors and Venture Capitalists?
Angel investors generally are investing their own money, unlike ventures capitalists (VCs) who manage the pooled money of others in a