1. Angel Investors
2. Venture Capitalists
3. Personal funds, credit cards, family and friends
4. Business loans
The above cited are four (4) of the possible sources where we can get financing for our business. This time around, let's get to know first about Angel Investors. Who are these Angel Investors? I found a helpful article written by Scott where he presented Angel Investors in a more interesting way.
A business angel is a person who provides capital from his own funds to a private business owned and operated by another person who is neither a friend nor a family member.
The typical angel is often described as a wealthy, retired, former tech entrepreneur who regularly invests in other people’s start-ups. While a few angels look like this, the typical angel does not.
Most angels aren’t wealthy. Estimates based on data from several sources suggest that the majority of angel investors are unaccredited investors.
• Few angels are retired. About two thirds are still working full or part time.
• The majority of angels live in two earner households.
• Most angels aren’t old. Surveys show that the odds that a person makes an angel investment peaks at between 45 and 54 years of age.
• Angels are more educated than the rest of the U.S. population, but one quarter of them have not graduated from college.
• Angels are no more likely to be experienced entrepreneurs than friends and family investors.
• Angels tend not to make many such investments, with a significant minority making just one angel investment in their careers.