Angel investors (in Europe known as the "Business Angle", or referred to as the "Angle") is a lucrative income and start-ups to provide start-up capital of individuals. Angel investors are usually required to obtain equity capital to be invested enterprises. With different venture capitalists, angel investors generally will not be passed by the professional managers to run their funds the way angel capital, angel investors will be through self-organized into a network of angel investors or angel investor groups, and then to the invested capital and angel networks to share investment in research results.
Many angel investors are retired business owners or managers, angel investors interested in their offer may be due not only limited to a simple return on capital. Other reasons may include the desire to keep up with the times, to provide guidance for the new generation of entrepreneurs, or "retired", that although no longer a full-time business, but still want to use their experience and relationships to develop their own portfolio companies. Therefore, the angel investors to start-ups can provide valuable management advice and important network of relationships.
Angel Investors - Investment Features
1. Investments, mostly in the seed and start-up high-tech small and medium enterprises.Of course, angel investment is not confined to the high-tech field, angel investment is not high-tech investment objectives of the project itself, but the tech behind the huge potential profits. Therefore, anything that can bring huge profits for investors the project, will be the object of angel investors.
2. Investment period is generally longer. Angel investing is a long-term equity investment, foreign information: from input to the divestment will go through 3-7 years, so it is called "patient capital." Angel investors for capital investment, can not get cash in the short term, no bonus, no interest, only after the success of the company to profit.
3. Investment objective is the pursuit of excess returns. Angel investors for start-up investment is not in possession for the purpose of the enterprise, but in the pursuit of excess returns as the fundamental purpose.
4. Equity investment generally. Angel investors generally venture to venture start-up phase of direct investment in shares, without any collateral and guarantees, generally does not require holding, only to obtain the corresponding shares, after 3-7 years of operation, the benefits achieved through divestment, and during this period usually have to keep on promising projects with additional investment, if successful venture, angel investors by way of sale or transfer of shares to recover the investment, and then go looking for new investment opportunities, complete the "investment - Recycling - re-investment "cycle investment mechanism.
5. Investment decisions than the average investor should be simple, fast, but are based on certain procedural basis.
6. Investment sources, mostly private, individual, decentralized funds.
