Angel Investors or "Angels" are high net worth individuals who seek to invest in businesses with the prospect of high returns. Generally speaking, angels are former entrepreneurs who have retired or cashed out of their own ventures. Angel investors typically involve themselves with early-state companies and provide cash in exchange for equity. Typically, angel investors invest smaller amounts of money into start-ups than their counterpart venture capitalists. However, as the tides change in the business investment community, angel investors are more and more taking on the role of their counterpart.
This is primarily due to the fact that venture capital firms have gone to a more reserved and less volatile stage of funding—business expansion—and aren't as prevalent in the start-up environment anymore. Many angel investors are part of an angel group, allowing them to increase their access to investment opportunities and oftentimes invest jointly with other angels to hedge their risk.
For many entrepreneurs presenting, a well-written angel investor business plan is the best way to start looking for investors. However, many successful entrepreneurs tap into their own network to find ready and willing parties that are potential angels. This is also loosely referred to as the "friends and family" round.
In the modern realm of actively seeking equity-based capital you must be willing to send your business plan or at least a well-written executive summary of the business plan to investors. But be ready, not every good business is a good fit for a particular angel. Instead of putting your tail between your legs and going home when you are told no, keep plugging the angel for information. With the advent of the internet and angel networks, these people might just point you in the right direction.
We specialize in creating dynamic business plans that leverage the strengths of your concept and team. Our business plans have been hailed by many angels as the best in the industry and we can save you hundreds of hours and lots of confusion during this exciting process.