All about angel investors

Today, in the ever tightening lending market more and more business owners are turning to angel investors in order to get the business financing that they need. This is often the only option for business owners who are looking to start their business or have a very new and very small business. Today, lenders are afraid to take risks on unproven business owners which often leaves those with experience and extensive assets wondering how they can get the financing that they need. This is where angel investors come in. However, before any business owner begins the search for an angel investor they need to take the time to truly learn all they can about angel investors. Here is all about angel investors-

- Know who they are likely to be-The first step in finding an angel investor is really knowing who they are most likely to be. Demographic studies show that most angel investors are between the ages of 40-65 years old. They most often have earned over $100,000 dollars a year but will have a net worth that is most often between $750,000-1 million dollars.
- Know what type of experience they will have-Most angel investors will not only have experience running a business but will typically look for businesses to invest in that they have direct experience with.The reason for this is that most angel investors will want to play an active role in their investment. This is an important aspect to keep in mind since the business owner will need to give up some control in exchange for the money that the angel investor brings to the business.
- Know what an angel investor will want-There are certain things that most angel investors are looking for in any business that they put their money into. Most angel investors will be looking for an investment opportunity that is between 7-10 years in length. The average amount of investment money that is put in is $150,000 dollars. Studies also show that angel investors most often invest through referrals which means that even if a particular angel investor does not invest with your business he or she may refer you to another angel investor who will. Keep in mind that the number one thing that any angel investor will be looking for is the potential for profit from your business. If they don't feel that they cannot receive a high rate of return on their investment there is little chance that they will invest with your business.
- Know where to find them-Your best bet for finding an angel investor is to look locally. The main reason for this is that most angel investors want to take an active role in their investment which means that they will only invest in businesses that they can get to physically. Your angel investor will want to be able to stop by and see how their investment is going. In order to find an angel investor it can be very helpful to really focus on networking when you are actively seeking an angel investor. Business owners who are active in their communities can often come across opportunities to connect with an angel investor. This makes it crucial that you get involved with your local Chamber of Commerce, Business Alliance, and any other function where angel investors may be attending. In addition, it can be helpful to attend trade shows, exhibitions, and conferences that angel investors may be attending. Finally, only if you are not able to find an angel investor locally you may want to try online and search the internet through different networking opportunities.