What is an Angel Investor?An angel is a high net-worth individual who invests his or her own money in start-up companies in exchange for an equity share of the businesses. We represent many private angel investors as well as review opportunities for our own capital. Why A Plus Capital ? We are open to many different types of business ventures beyond traditional angels and structures. We will review all types of small business ventures and recommend a win/win partnership. No venture is too small for us. Other important things to know about angels include: - Many angels are former entrepreneurs themselves
- They make investments in order to gain a return on their money, to participate in the entrepreneurial process, and often to give back to their communities by catalyzing economic growth.
- Angels make a return on their investment when the entrepreneur successfully grows the business and exits it, generally through a sale or merger
- Unlike other angels, we are flexible and open to ventures that may provide a regular cash flow or income instead of a sale or merger exit strategy. This may be better suited to the small business entrepreneur who would like to manage/operate a business rather then exit.
- It is estimated that angels invested 19 billion in more than 55,000 start-up businesses in 2008 (Source: Center for Venture Research)
- Angels tend to invest in companies that are located near them regionally (or to co-invest in a wider geography if a local investor they know and trust is involved)
Will Angels & Angel Groups sign non-disclosure agreements? If they don't, how do entrepreneurs protect confidentiality?During the initial portions of the evaluation process, the vast majority of angel organizations will not sign non-disclosure agreements. We just see too many deals, often in a similar space. When submitting executive summaries and even business plans, the entrepreneur needs to explain the business so that the potential investors can understand the company's opportunity for success, but don't learn about any confidential issues. Business Plan Criteria It is important that you address the following criteria in order for us to review your business plan:
- The business offering
- Business market/client base/target customers
- Competitive environment
- Unique and compelling competitive advantage
- The business model & sources of revenue
- The distribution strategy
- Capital cost estimates/Finances
- Partnerships involved
- Current shareholders and capital invested to date
- What are you looking for in an Angel Investor/Small Business Partnership ?
Please email plans to businessplans@apluscapitalinvestments.com
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