Pros And Cons Of An Angel Investor

The angel investor is looking to do business with other business people. Their interest is in investing with a chance to grow with the business and what it might mean for them. They are investing billions of dollars in thousands of companies today (Bell, 2007). Exploring what the angel investor is and why they invest will give some answers as to why they might be a good partner. What makes an offer attractive to the angel investor, and the differences between angel investors and venture capitalists will show more information of their pros and cons and give ideas to the business person who is looking for an investor. Is an angel investor a good fit for the entrepreneur will be exposed by delving into this information.
What is an Angel Investor, and why do They Invest Angel investors look for opportunities to grow their own business involvement by attaching themselves to new and/or growing businesses. They are a growing section of investors these days partly due to the fact that starting a technology company …show more content…
Angel investors might belong to a group of other angels in an attempt to pool their resources, and are mainly interested in start up businesses (Funds and financial, n.d.). One difference might just be where the business is at to draw attention from an angel investor as opposed to the venture capitalist. The venture capitalist could be more interested in where the company is at developmentally, and have studied the business model before they will invest (Funds and financial, n.d.). The venture capitalist might be willing to invest, but not without doing their homework. The venture capitalist could be willing to invest more money than the angel investor, but they will be using other peoples money where the angel investor will typically be using their own (Bell, 2007). It stands to reason then that the angel could afford to be a gambler, where the venture capitalist could