Tuesday, December 10, 2019

How to find Accredited Investors and Angel Investors

Experts estimate that there are close to 4 million Angel Investors in the U.S. Angel Investors are everywhere.  Friends, family, networking connections, and coworkers are all potential Angel Investors.  Since Angel Investors need to have the money available to invest in your business, you probably want to target people with a high net worth.  There are also a number of portals that may be able to help you find investors, e.g. Gust, Angels List.

Working with a placement agent or meeting someone through a warm introduction have been the most effective tactics for me. I have also met investors through networking events, social media, and golf. Below is some additional information about Angel Investors.

Entrepreneurs Become Angels 

More than half of angels (54.8 percent) have experience as entrepreneurs and often advise the startups they invest in, informally or as board members. Angel investors with entrepreneurial experience write bigger checks, with an average of $39,000 vs. $28,000 for angels without entrepreneurial experience. They also have more companies in their angel portfolios and see better returns.

More Women are Becoming Angels 

Women comprise 22 percent of angel investors in the study – and that number is growing. Among respondents who began investing since 2015, 30 percent are women. In comparison, studies have shown 5 to 8 percent of U.S venture capitalists are women.

Women Invest Differently than Men

51 percent of women respondents consider gender of business founders to be important when making investment decisions (compared to 6 percent of men). “This indicates that women are seeking to support women entrepreneurs,” says lead researcher Laura Huang. Another gender difference: twice as many women as men reported they strongly consider social impact of a startup when making investment decisions (33 percent for women vs. 16 percent for men). Both men and women angels agree that the quality of the founding team is the most important consideration when investing.

Eyes-Open Risk Takers

Angels said an average of 11 percent of their portfolio yielded a positive return. “That number is consistent with other studies that have shown 5 to 10 percent of angel investments yield a positive return for angels,” says Huang. “A deeper dive shows that where startups have been sold or gone public, 39 percent yielded positive returns for the angel investor.”


Do you need help finding an angel investor or accredited investor for your business? Contact us today, funding@omegaaccelerator.com 



Are you interested in working with a placement agent to find the business that is right for you?  Email us today to learn how we can help, info@OmegaAccelerator.com.



Sources:
https://www.angelcapitalassociation.org/faqs/
https://www.genglobal.org/united-states-gban/new-research-individual-angels-provides-insights-startup-ecosystem
https://www.linkedin.com/in/rencarlton 
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html


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.

3 comments:

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