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What kind of company are Angel Investors appropriate for?
Home » Entrepreneurship » Angel Investors » What kind of company are Angel Investors appropriate for?Angel investors are searching for early-stage businesses with little to no revenues or proven ones with documented sales and profits. Some examples of a good fit between angels and companies are those businesses launching a new product or those with an established product in need of a new marketing campaign. According to entrepenuer.com, the companies with the best chance of obtaining angel funding in 2002 were those that already had a product (or service) on the market or were very near marketability. If your company is edging near the break-even point, your odds might even be better.
Remember that birds of a feather flock together. Angel investors do not have the time or inclination to research an unfamiliar industry. They stick to who and what they know. Keep this in mind when you craft your business plan and search for potential investors.
Lastly, ask yourself if you’re ready to relinquish at least some control to someone on the outside. Ideally, you should also be willing to offer an easy out for these investors in the form of an eventual public offering or buyout.
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