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ANGEL INVESTOR
An angel investor is
an individual or group that can
provide $50,000 to $500,000 of
capital into your business in
exchange for equity such as
preferred stock. It is often the
first source of financing (other
than financing provided by friends
or family). They can supply the
capital to get the business to a
stage where it can qualify for
venture capital.
Angel investors are
willing to take a high risk in
exchange for a high return.
Typically their participation will
be contingent upon there being a
suitable exit strategy. This
funding comes at a high price.
You are going to have
to sell the viability of your
business to the angel investors.
You will need a business plan, as
well as an elevator statement and
executive summary. Have your IP
(patents, trademarks) applications
on file.
Angel investors can
be located through an internet
search engine. Another group
is the Houston Angel Network.
November 26, 2006 |