Angel investors have provided start-up capital to some of the world’s largest corporations. Without their financial assistance, companies such as Facebook, Google and Twitter might not exist. The prospect of receiving financial backing from an angel investor is every bootstrapping entrepreneur’s dream. If your goal is to acquire money from an angel investor, you must know the qualities of a good angel investor.
Honest and Trustworthy
Accepting money from an angel investor can put you and your company in a vulnerable position. If you put your company in the hands of an unscrupulous investor, you could lose it.
As you are interviewing angel investors, research them to determine whether they are honest and trustworthy. You need to find an investor who will not go behind your back and cut you out of a lucrative deal.
Successful Track Record in Business
People who have been successful in business possess the character traits of good angel investors. Successful entrepreneurs will be able to mentor you as well as provide you with necessary start-up capital.
Potential investors who are not successful in business may not respect the time it takes to make your venture successful. As a result of their impatience, they may decide to pull the plug on your financing prematurely.
Possess Strong Skills and Expertise
As you are building your business, you will encounter situations in which you will need guidance. Your potential angel investor should possess expert knowledge in marketing, corporate processes and ROI calculations.
Growing a business requires different skills than starting a business. An experienced angel investor can guide you through the different phases of the growth process.
If you are an entrepreneur who is hesitant to embrace the involvement of other people, reconsider this mindset. Collaborating with people with diverse mindsets is essential to growth.
Your angel investor should have a desire to actively help you take your business to new levels. Good angel investors can help you find additional funding from other sources. They can help you find the right people for key positions within your organization. It is good to accept invitations for assistance. You do not have to build your business alone.
Determining the traits of a good angel investor does not have to be difficult. If you adhere to these tips, you will find an angel investor that is right for your company.
David Milberg is a successful investor from NY.