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Learn the Angel Mindset article

If you want to encourage investors to put money into your business, understanding the mindset of an angel investor can be invaluable. Investors can help take a business forward by leaps an bounds and knowing what they are looking for will help you get your venture the capital it needs. 


The most important things an angel investor will want to know are: 

 

With regard to the capital to be invested, an angel investor will need to know: 

 

An investor will also want: 

 

Investors are likely to be deterred from putting money into your business if: 

 

Generally speaking, angel investors prefer to be involved to at least some extent in the businesses in which they have invested. So the trend is for angel investors to get into start up ventures or small businesses, where their skills and experience in business will be useful in taking such an enterprise ahead.  


Look for those who are successful, experienced, and who are willing to wait till your venture is ready to offer returns. You also need ensure that your investors have easy access to the capital they are offering. You shouldn’t have to pester your investor for money – it is both time-consuming and counter-productive. Remember not to agree to accept a smaller amount of money than what is actually required, and ensure that communication channels between you and the investor are always clear. 


Consider the following facts of angel investing:  

 

Remember not to neglect areas such as banking, vendors, the community your enterprise belongs to, and corporate social responsibility. All these will have an effect on your potential investor’s decision.