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Business Coach |
Types of Business Angels |
Source: "Where to Go When The
Bank Says No: Alternatives for Financing Your Business", by Evanson, D.R., 1998
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Corporate angels |
These private investors use
their severance or early-retirement pay from former senior management
positions at large corporations to make entrepreneurial investments.
Typically, they seek a new senior management job in the investment, want to
be involved in one investment at a time, have about $1 million in cash, and
make investments in the $200,000 range. |
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Entrepreneurial angels |
The most active of the
angel investors, they invest the largest amounts, generally $200,000 -
$500,000. They tend to have been successful entrepreneurs themselves, now
looking for ways to diversify their portfolio or expand their current
business, rather than looking for a new job. |
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Enthusiast angels |
Less professional than
their entrepreneurial counterparts, these angels invest in firms more as a
hobby now that they are in their later years. They tend to invest smaller
amounts (from $10,000 to a few hundred thousand dollars) across a number of
companies in the hope that one will have an IPO, but they do not actively
participate in their investments. |
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Micromanagement angels |
These angels prefer great
control over their investments, often micromanaging them from a seat on the
company board rather than through active participation. They may invest in
as many as four companies at a time, adding value as well as money to each. |
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Professional angels |
As investors from
backgrounds in professional careers (doctors, lawyers, accountants), these
angels prefer to invest in firms that offer a product or service with which
they have experience, frequently offering their sector expertise to the
investee firm, although they're usually not too actively involved. Generally
investing in a number of firms simultaneously, they tend to invest from
$25,000 to $200,000 each and prefer to co-invest with their peers. |
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