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Angels Investors in USA

What is an angel investor?
Angel investors are usually individuals who have been very successful and invest play money in new business ventures when no one else will provide funding. Usually it is at a start up stage of a business or a very critical point in the survival of a business. Since there is no assurance of the survival of the venture, angel investors demand a high return on their investment. Angel investors hope that 2 out of 10 deals will be very successful that will more than cover the losses of the other 8 investments. Angel investors expect an equity investment in the company and sometimes a repayment of their original capital in addition to the equity investment.

How much do angel investors invest?
The amount that an angel investor will invest in a business can range from tens of thousands of dollars to a very significant investment. Some angel investors pool their money together and share of risk of larger investments.

Angel investor monitoring
Angel investors are often no active in the day to day activity of the business however they require reporting and monitor their investments closely.

Who are angel investors?
Angel investors are investors who provide capital when personal resources have been exhausted, when friends and family cannot contribute and more and the bank will no provide you funding without being 100% secured.

Documents needed for angel investors
You will need a brief overview of the business. If executive summary is of interest to the angel investor, then they will look at a business plan.