This particular term typically refers to a wealthy businessperson who provides resources and capital required for a business start up usually in return for a stake in the company or convertible debt. One study by NESTA in 2009 determined that there were between 4100 to 6100 angel investors in the UK with an average investment amount of £42000 per investment.
The unique term `angel investor`, was initially coined to describe affluent investors in movie production back in the early times of the 20th century.
Benefits of An Angel Investor
Angel investors in Singapore always create groups to take advantage of their exclusive expertise and perhaps to spread out the considerable risk of investment. One of their main areas of focus is usually on business entrepreneurs, their concepts, prototypes and ideas as well. For this reason, associating with savvy angel investors of help to control risk and contributes to improving the odds of making lucrative investments.
Dynamic Industry Choices
Being aware that entrepreneurs exist in virtually all industries is vital. Therefore, angels have a tendency on specializing in their industry of experience or choice, without venturing into unnecessary startups that are outside their boundaries of their expertise. This particular type of benefit helps avoid the unnecessary cost of hiring additional expert help.
According to the Center for Business and Entrepreneurship Venture Research estimated that in 2011 angel investors provided well over twenty-two billion dollars in revenue for well over 65,000 upcoming companies. The pathways for investment are countless thus allowing investors to generate high turnovers as result helping to improve the economy and society as a whole
Angel investors have the freedom to make bold decisions as they choose. This type of freedom increases the overall productivity advantage as when compared to conventional investment options. They can analyze the business plans of any business and come up with the appropriate decision for the ideal investments
Tips when choosing an Angel Investor
Although this form of investment might be a great endeavor, the following are some of the tips that you should consider.”
- Avoid hurrying the decision-making procedure. Make informed decisions and adequate improvisation.
- Realize that angel investing requires teamwork
- Perform a feasibility test
- Include all details and calculations