Startup Business Investors

Startup Business Investors: Know the Angel Investors…!!!

Startup business investors also known as Angel Investors. Let us today discuss about Angel Investors. Well, This article is not about where you will find Startup Business investors. But this article is all about the mentality and the mindset of the Angel Investors. Well, see. This is how the Angel Investors think.

Typically these angel investors are the first generation entrepreneurs who have made their fortune by selling their first one or two successful ventures or if they have not fully sell their ventures, they have partially sold them to the public. I mean they have taken it to the public and now their first venture is publically listed.

So now, these angel Investors are sit on a Huge Cash pile. But now they don’t want to invest in some other publically listed businesses or already established businesses. Because the growth in already established businesses is very low usually single digit.

But the startup business investors know that, the real growth (as high as triple digit growth) is in start up businesses and it is only the startup businesses which can give the highest return on Investments (ROI). Many startup businesses grow as high as 100-1200% per annum…!!!

Say for Example take the Example of Larry Page, The Co-founder of Google. Larry first time raised $ 25 Million fund for Google Corporation from the Angel Investors only. And today Google is the Giant Company.

Thus, Angel Investors want to exponential growth of their Capital. Now, the question is that, What Do Angel Investors see in any Business? Well, most of the Entrepreneurs think that, they see for how big the market opportunity is. But actually this is not true. In reality, the angel investors see for the Management Team, its PASSION, EXPERTISE & EXPERIENCE behind the Business.

If they find the management team perfect, they will invest no matter in which Industry that Business operates in. But if they find that, the management team is not that much Passionate or expertise than they will not invest in it.

They ask the simple question to you and that is – How much will be your salary from the Company once I fund your Company?

Most of the Entrepreneurs will say high figure salaries for them and they will know that, they are not really passionate about their Businesses but they are looking for startup fund to have a fat salaries for them. But the real passionate entrepreneur will work for the business even without the salary.

Thus, This is the basic mindset of Angel Investors. I hope this much information will be useful to you when you first time meet the Angel Investor to raise the Capital for your startup Business.