What Is Meant By Angel Investors?


2 Answers

Rabbia Pasha Profile
Rabbia Pasha answered
Angel investors can be classified into five basic groups:

Corporate Angels:
Typically so-called corporate angels are senior managers at Fortune 1000 corporations who have been laid off with generous severances or have taken early retirement.

Entrepreneurial Angels:
The most prevalent type of investors, most of these individuals own and operate highly-successful businesses.

Enthusiast Angels:
Whereas entrepreneurial angels tend to be somewhat calculating, enthusiasts simply like to be involved in deals.

Micromanagement Angels:
Micro managers are very serious investors. Some of them were born wealthy, but the vast majority attained wealth through their own efforts. Unfortunately, this heritage makes them dangerous. Because most have successfully built a company, micro managers tend to impose the tactics that worked for them on their portfolio companies.

Professional Angels:
The term "professional" in this context refers to the investor's occupation such as doctor , lawyer and in some very rare instances, accountant. Professional angels like to invest in companies that offer a product or service with which they have some experience.
They rarely seek a broad seat but they can be unpleasant to deal with when the going gets rough and may believe that the company is in trouble before it actually is.
silver swan Profile
silver swan answered
An angel investor is also known as a business angel. These investors are private individuals who offer capital for a private company and generally want less control of the company. 

Angel investors normally invest their own money and are great source of private capital. This capital is generally presented usually in exchange for ownership equity in the form of stock or instruments exchangeable into shares.

Angel investors seek companies that have a high potential for growth and can compete in an industry. The angel investor is generally nearly 47 years old and should have an annual income of $90,000. Most investors invest in a company which is easily accessible to them or near their home.

An angel investor is a wealthy investor: Their investments are extremely high-risk and therefore have a high return. Angel investors are mostly retired executives and they can offer helpful management suggestions and significant networking links. They invest in companies which have no revenues. 
To effectively utilize angel investors, a company should provide an exit to these investors in the form of public offering.

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