The angel investors business model consists of diversifying, placing his fortune in various ventures. Thus, it is enough that only some of these new companies work to make a profit.
The angel investor is a very wealthy individual interested in financing innovative business projects with high expected returns. Such initiatives, however, are also high risk.
As we know, the higher the risk of an investment, the higher the profitability required of that investment.
Let’s imagine that we invest 100,000 euros in 5 different companies, spending a total of 500,000 euros.
If 4 of the companies end up in bankruptcy but sell one of them for 1,000,000 euros, our final investment will have been successful.
The term “angel” once referred to wealthy individuals in the Broadway theater community who stood up to save a production from closing its doors.
Centuries before that, we had patrons who financially supported professional artists and creatives to focus on creating new work. Angels today are the equivalent of compassionate financiers.
While angels make the difference between startup growth and closure, they are, first of all, investors. They are not interested in giving away money; they want it back at some point.
To increase the chances of getting your money back, with interest, angels take the following into account when evaluating a business:
When you want to get an angel, keep this in mind.
If you think you fit what an angel wants, you may be wondering where to find one. Some of the most common connections occur through:
Start by asking your advisors, such as your lawyer or your accountant, to know who might suit your company and its financial needs.
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