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Angel Money Compatibility

Your business may be investment-ready but are you Angel-ready?  Angel investors have much more to offer than just funding. They typically become involved in the business -- a value-added element of Angel investing if you are open to being advised and can embrace shared decision-making.

Use the checklist below to determine if Angel money is for you by identifying each key consideration as a pro or con.

Key Considerations
Pros
Cons
Access to Investors
Putting your business in front of an Angel group gives you access to many potential investors. However, many investors in one room can ask very searching questions.
Mentorship
Angel investors tend to be well educated and have business experience and/or professional skills and/or industry expertise. Accordingly, they will usually be involved in the business in order to apply those skills and knowledge in the capacity of guidance, mentorship, and/or Board of Directors. But this may make decisions a bit more involved.
Investment Amount
Angel investments can range from $25,000 to $150,000 per deal per investor. However, the leadership of one or two Angels may be needed to cement the support of others.
Return on Investment
Angel investors are usually former entrepreneurs. They therefore understand the journey and don't expect that the investment will pay off immediately.
But since the investment risk is high, Angel investors expect a high rate of return. Other forms of financing could be less expensive.
Ownership of the Business
Angels usually do not want a majority stake as they are investing in your potential as much as in your business. However, control of your business and decision making will be a joint venture with outside investors.
Contacts
Angels can provide access to an extensive network of contacts for business development, professional or industry expertise, etc. But you will have to share information and Angel investors typically don't sign non-disclosure agreements.