Angel investment network to breathe in new life into your business

The development of a business, be it a partnership or a joint stock company, depends on investors. Business is a two-way street, which is frequented by investors and entrepreneurs. They are complimentary to each other. An investor would be ideally looking for a company where he/she can invest his/her funds and get returns. On the other hand, an entrepreneur would be looking for a person who would fund his/her ideas and help him/her realise his/her dreams and make the business a success. As an investor, you would be interested in investing in a growth, scalable business. And as an entrepreneur, you would be lookout for an investor who will be willing to invest in your business. This is where an angel investment network steps in.

An angel investment network is one where an angel investor, who is a seasoned entrepreneur, or an affluent individual, gets together with other angel investors and organizes himself/herself into a group or network, and provides the needed capital for business funding generally in exchange for convertible debt or ownership equity. For that angelic touch in your business, an angel investor network works well. This angel literally looks over your business and its working. But not everyone can be an angel investor. When looking for your angel, keep some of the much needed information about him/her handy. Generally when a tenured entrepreneur wants to prepare the next generation so that he/she can hand over the reins of their business to them, they can assume the role of an angel investor.

An angel in this parlance is a person who has met all the required credentials set by the Securities Exchange Commission or SEC. By their definition, an angel has to be an accredited investor. Now, an accredited investor is a person who has a net worth of $ 1 million in the least, or a $200,000 a year or $300,000 annually, jointly with a spouse. The angel investor would be interested in your venture more if your business is already beyond the startup phase and the initial jitters and hiccups are over. But the finances and resources pooled in by these angels would not go in vain as the business might utilise it to develop new products or make a marketing strategy operational.

The common principle why this arrangement is mutually beneficial for both the investor and the entrepreneur is, that since the investor has his/her money on the line, he/she will be motivated to help the business succeed by sharing best practices and providing important inputs. But every pro has a con. In this case too, the saying holds true. From giving a lion’s share of the profits to them and risking your own employment in the business, you might have to take the fall for anything and everything. Because of the concept of the angel investor network, the angel groups are ballooning and multiplying at an accelerated growth rate.

Before you approach such investors, there are a few pointers for you that might hold you in good stead. Firstly, the first impression you create on them is a lasting impression. Secondly, in the first round of your funding pitch, do not make the mistake of giving up more than one-third of your equity. Thirdly, you should be able to make the correct financial projection of your business. And, lastly, do not forget to treat yourself as any other employee and take home a salary. With all this information under your wings, you will be able to make your business fly, albeit, with a little bit of flight instructions from the angels.

Angel Investors Network:  http://dallasangelnetwork.com/angels.php