Because of this, many firms want to back bigger ventures. However, the tremendous financial returns to entrepreneurs of the 1990's has also created many new affluent business owners who have become angel investors. There are probably more angel investors today than anytime in history. Unlike many venture capitalists, angels are not always looking for a quick IPO company. They tend to invest in companies longer term.
Some angel investors can also contribute tremendous business insight and experience.
Be sure they realistically can afford to make aggressive investments in your business and that they understand the risks. Agree, ahead of time, what, if any, non-investment involvement the angel will have with your company. With either angel investors or venture capitalists, you will need to give up partial ownership of your company. Very few angels or venture capitalists will invest without equity upswing potential. The SBA has many programs to help small business owners secure loans.