Fundamentals to Become An Angel Investor

These days, there are a lot of ways in which people can go about the business of investment and being entrepreneurs as you can either choose to be in the face of the business and in the middle of operations yourself or just let your money do the investment for you, a set known as the active and passive entrepreneurs. While there is just one way of being an active entrepreneur – owning the business, there are various ways in which a passive one could act and these include but not limited to buying shares, buying a franchise, or the biggest one, becoming an angel investor.

Do you have some amount of money that you have saved back but are not currently using to meet any need or achieve anything? Well, why not look for a business to invest in as an angel investor and sit back while your money works for you? If you are new to the business of angel investment, there a variety of angel investors out there such as the


    · Core angels

They equally have experience in the business they are investing in and asides from the capital, they would be glad to offer you some tips and hints too.

    · High tech angels

These are those angel investors whose drive is mainly to see the production of high tech gadgets for the market and they fund industries and firms with like interests

    ·Return on Investment angels

These ones would just set you up with the capital and leave you to it, expect you to make meaningful use of their capital, and start producing decent returns on the investment.

The next thing you need to know like an angel investor aside from the type that you might fit in from the list above is the kind of influence you can wield with your investment. This brings us to the types of angel investors that are already in existence. Look through and with an open mind, choose the position that best suits you, and make sure you work that into the contract with the business owners. Without much ado,

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    · Corporate angels

Corporate angels are not just looking to put in some money into the business and the leave. No. they usually want a seat at the table also and would love to have a paid position in the company. Working for their money while the money is also working for them.

  · Entrepreneurial angels

These angels have been in the business for a long time themselves and have already built a steady base of income, from which they can use the profits to help other young entrepreneurs to start a shop.

·        Enthusiast angels

This category is usually very wealthy and retired already and they find a new hobby in seeking out businesses with profitable prospects to invest in.

    · Micromanagement angels

These angels bring not only funds to the table but management skills for the growth of the business also.

   · Professional angels

These ones invest in businesses in their own field of expertise and would offer you discounted prices should you need their services or expertise.

From a mentor angel, do not expect any money or funds for your business but they would be willing to take you by the hand and teach you the nitty-gritty of the job. They have a sea of experience already and they are ready to bless you with some.

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   · Head angel

The head angel sources for other angel investors like themselves and convinces them to invest in a start-up.

    ·  Dark angels

The dark angels are probably the most unethical kind there is but sadly they exist. They invest in the business so as to get close to the hierarchy and once they climb a little up the pecking order, start plotting a takeover of the business.

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So, for now, willing angels should check the type and category of angels they would love to be and business owners should get updated on what kinds of angels to expect. In the next post, we would be reviewing how to then become an angel.


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