How Angel Investing Works – BusinessWeek

How Angel Investing Works – BusinessWeek (click to open link)

While VCs make much larger investments, angel groups give from around $25,000 to $50,000—and tend to want real involvement with the company

Here is a good brief by Tom Taulli that explains the difference between Angel Investors and Venture Capitalists. He also references some websites you can explore to locate a good fit angel group.

“Is your company looking for an equity investment under a few million dollars? You might first think of approaching venture capitalists, but I suggest you try angel groups. For the most part, VCs manage large pools of money—sometimes in excess of $1 billion—and do not have the time to deal with many investments. They prefer to make large investments that range from $5 million to $10 million per transaction.”

“Angels, on the other hand, are wealthy individuals who invest funds in early-stage companies (BusinessWeek, 4/17/08). The amounts often range from $25,000 to $50,000 per deal. Over the past decade, angel investors have formed angel groups that meet either monthly or quarterly—and pool together their deal flow, resources, and capital.”

(Via .)

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