Profile Of The Typical Angel Investor

We first heard the term “angel” in the early 1900’s used to describe investors on Broadway who invested in theatrical productions. Today it refers to high net worth individuals who are “accredited” investors under the SEC rule 501 who invest in companies in early stage rounds of growth.

Angels generally have investable funds from one million dollars or more. Another criteria for these individuals is that they earn more than $200,000 per annum to qualify as an Accredited Investor. They would not only invest financially but tend to provide advice and assist with taking your company to the next level.

Over the past decade Angels have been favoring the technology sector but have not been limiting themselves just to this one sector. Land Development and the Biotechnology areas have been consistent and in fact have experience growth over the past ten years with land or Asset backed ventures only seeing fluctuations with the subprime real estate debacle.

With the Venture Capital Firms finding larger deals to invest in a gap started to emerge for smaller funding niches which has been consistently expanding and as a result more angels have been emerging onto the global scene. This combined with the technology expansion in the Information Age it has made finding deals easier for Angels who are always looking to expand their deal flow.

Angels normally fall into four categories:


1. Guardian Angel


2. Professional Entrepreneur Angel


3. Operational Expertise Angel


4. Financial Return Angel


Guardian Angels are active investors that guide and coach the management team that you would have in place. Because Guardians invest so much time into projects they tend to take on a smaller number of deals (2-4 deals per year). For these investors the investment range is usually between $100,000-$150,000 per company and in the post deal phase they look to get a seat on your Board.

Professional Entrepreneur Angels are usually those individuals that have more than money but industry background experience through starting similar businesses before. Yet what we have found is that they look into other industries to invest in based on the potential for very high returns.

These players have evolved into full time angels. These Angels tend to be more patient investors because of the understanding that there are certain start up stages and milestones that have to be reached before results of success are apparent.

Operational Expertise Angels have served as senior executives in the chosen field that they focus their investment portfolio on. These are the Angels that other Angels consult for advice on deal quality and due diligence. These are the Angels you would want to have on your Board when it is time to go into the later stage of Equity Funding with Venture capitalist because they are seen as a plus to the management roster.

Lastly are the Financial Return Angels who have little entrepreneurial experience or industry experience. These are usually investors who made their money through other fields like doctors and lawyers who are just searching out investments that will have high returns with minimum involvement on their part. Professional Investors tend to stay away from deals that have to many Financial Return Angels because of the impatience and fear in market downturns. These Angels are the least likely to give you rigid terms and conditions like the institutional/professional investors would.

Angel Investors as a group are a very diverse based on their history and personal preferences yet with the right networking and proper introductions you can find the right Angel to fit your business profile.

DH Roberts teaches a powerful, highly advanced system of making money and getting and using millions in business funding online and offline. Learn THE SCIENCE OF MAKING MONEY and how to get Millions of Dollars in Angel Investor & Venture Capital Business Funding for all stages of Funding from a real Financier. Download my brand new free guide here: “Million Dollar Angel Investor & Venture Capital Funding Guide”

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