JASON SOLIS J A S O N S O L I S . C O
THE IMPORTANCE OF ANGEL INVESTORS FOR SMALL BUSINESS Early in the planning stages of a business, entrepreneurs and owners alike must make a critical decision: how to fund the business. These days, there are several options out there, and they all have their pros and cons. One such option is the use of angel investors. Angel investors are people who have lots of personal capital that they’re willing to invest into new companies, typically in exchange for an equity ownership interest.
The value in angel investors is that they are an approachable option for gaining starting equity. There’s less of a requirement to have a solid financial background.
Traditional loans require repayment regardless of a business’s success. Angel investors only gain equity ownership interest from successful business launches.
Wealthy individuals who make a habit of investing develop a good eye for such things. Angel investors are more likely to put their money into a business that they believe will succeed, providing a boost of confidence to any business.
Likewise, these investors can offer valuable insight from their years of experience. Even the other methods of angel investing may have creative solutions to the challenges that face new businesses.
Angel investors are a perfect blend of two ideals. While they can offer advice and insight – they do not have the authority to enforce their ideas. Unlike a board of advisors, their opinions don’t have to carry weight, giving businesses more flexibility in these situations. Jason Solis | JasonSolis.co