Wednesday, September 18, 2019

Why Angel Investors Fund Startups

I have been an entrepreneur in one form or another since I was a teenager. Despite the odds, entrepreneurship has provided me an amazing life. The benefits of being an angel investor and founder go well beyond money.  This includes freedom, flexibility, access, adventure, swag, entertainment, education, notoriety, and more. However, entrepreneurship can also require a lot of time, money, and risks. How can you enjoy the benefits of entrepreneurship and avoid these drawbacks?

You may want to consider becoming a part-time angel investor. According to recent statistics, Angel Investors invest about $25 billion in 70,000 companies every year just in the United States alone.

Because of the new crowdfunding rules, almost anyone can make angel investments.  Generally speaking, however, angel investors have a high net-worth and are looking to invest in equity of a business. Sometimes angels are part of angel investing groups. Others simply possess knowledge about private companies and want to put it to good use.

Below are some of the types of people that invest in startups and small businesses.

Investors Looking for an Extraordinary Return on Investment (ROI)

According to, angel investors can expect to earn a gross multiple of 2.5X their investment in about four years. That is a 250% ROI. Investors that are comfortable with the risks of angel investing may be able to enjoy this type of return.

Seasoned Entrepreneurs Who Want to Mentor

They relish in the idea of being a mentor to the younger generation of startups. If you have the income and you want to make this type of impact, consider making angel investments.

Business-Minded Entrepreneurs Who Want to Network

If you’ve made it far enough in your professional career to have the time and money to consider investing, then you are probably already pretty good at networking. Angel Investors take this to the next level. You can gain unique opportunities to network with people from a totally different perspective. When you are at a networking event, people will find you to pitch ideas.

Those Who Care About Innovation

High-tech angels often care just as much about ROI as they do about introducing high-tech and innovative solutions into the world. These investors might even care more about the mission or impact of a company. If you want to make a difference in the world of medical tech, fintech, or any other industry that has the potential to make a huge impact, then you should consider making angel investments.

Looking for Something New

Angel Investing is an easy way to give you access to the world of entrepreneurship. This often includes access to new ideas, events, and opportunities. Boredom was one of the reasons I quit my job as a CFO to become a full-time entrepreneur. I have not been bored a day since that decision!

Are you interested in becoming an Angel Investor?  We can help!  Contact us today,


Disclaimer:  This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service.  We are not offering any legal, investment, tax, or medical advice.  Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties.  All stories are based on true events, but are altered to protect the identity of the individuals involved.

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