Startups · Angel investor

Any thoughts on what makes a good angel investor?

Svyatoslav Dormidontov Web-developer

September 16th, 2016

Is it a matter of the money, the network, or the background? As I am helping a friend to put together a Seed round of financing for a fashion tech business I keep wondering what the ideal angel investor looks like.

Martin Omansky Independent Venture Capital & Private Equity Professional

September 16th, 2016

We are angel investors. There are five traits that are common to us all: (1) we specialize in a subject matter; (2) we have imagination; (3) we are willing to take risks; (4) we can afford to absorb losses; and (5) we have a sophisticated understanding of business methods and finance. It also helps if one has a highly developed sense of humor. Sent from my iPhone

Richard Liebman 20+ Years of High Level Financial Services

September 16th, 2016

Anyone whose check clears. 

Mitchell Bolnick Business Mentor, Adviser, Consultant for Start-ups, Small Businesses, Growing Businesses

September 16th, 2016

To me the only really good angels are private equity investors with long term views and goals. Ones that have their own exit strategy and are not relying on you selling your business for them to make all of their money. Often they will want to be a little more involved with your business than a typical angel who is looking for a quick (<3 year) large return. The problem is most angels look at investing in your business as a bit of a crap shoot. They want in and out because 9 of the 10 businesses they invest in they get zero, or near zero, return out of. Therefore, they are going to give you very low valuations (to ensure a big return) and be looking for something with an obvious exit strategy for them. Best of luck, it's tough money to get but there is a bunch of it out there and I believe angels are much better than VC's when it comes to retaining a semblance of control in your business. *Regards,* *Mitch Bolnick* *We Help Your Business Excel!* *602-686-0641* mitchell.bolnick@gmail.com *Principal* *The Excel Consulting Group* *http://excelgroupsolutions.com/ * *Venture Mentor* *Arizona State University* *Ira D. Fulton School of Engineering* *https://engineering.asu.edu/ * *Commercial Real Estate* *Caliber Realty I Commercial +* www.CCREplus.com

Steve Shapiro Managing Partner at eHealth Ventures LLC

September 16th, 2016

Someone that can of course contribute funds at reasonable terms, and can add value.  Smart money is always good.  Someone in your industry with good connections that is willing to make introductions.  Someone that can make meaningful suggestions, while letting you run the show.

Richard Awni Project Management | Clean Energy | Solar | Go-To-Market | Emerging Technology | Branding I Marketing I Non Profit I HR

September 16th, 2016

Light green with obviously the check has to clear and they have to have money. But also is Martin pointed out and a couple of the comments it is important to have an investor whose interest in that segment aligns with your direction. Women with patients and will give you time to develop your Market in building your company is crucial to having great relationship while you build value and your goal should be to besides getting to market is to provided very good return on the investment to your Investors 

Richard Awni Project Management | Clean Energy | Solar | Go-To-Market | Emerging Technology | Branding I Marketing I Non Profit I HR

September 16th, 2016

Freakin spellchecker. .lol

Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

September 16th, 2016

Two comments stand out. Martin's suggestion that an angel investor needs a sense of humor and Mr. Leibman's that from your perspective if the check clears, the deal is done. There is more angel and venture capital around than ever before and no generalizations about the people in this industry are appropriate.  Suffice it to say that if you were going to a bank for funds you would not ask that question.  Don't lose sight of the fact that this is a commercial transaction and should be approached on that level. The relationship should be pleasant and professional  but you are not dating.

Donavon Urfalian A.I. Engineer / Entrepreneur / Founder & CEO @ Umazed / Kodo Startups

September 16th, 2016

Hi Svyatoslav. I read the whole tread of some good and a few cute silly answers. I think that all the things you said-network, background, money-are all important. I'd recommend that you start off by using AngelList, here is the link---} angel.co And search for Angels Investors in your area, there you will be able to see the area that they invest in (e.g. Clean Tech) and how many followers they have, as well their LinkedIn, Facebook, and Twitter links. Perhaps they may be VCs that do seed investing, if so, then check out their company's website. Find out what year their Fund is in, you are ideally looking for year 1, 2, 3 of a typical 10 year Fund. It's a small world, so everyone knows everyone, so be careful with reputations as people aren't willing to say honest things about the bad apples, so you have to be focused and use your judgment wisely. You could also use Meetup.com or just Google search when they are holding or participating in events to get a sense of what they are like in person, and see if they welcome "Executive Summary" submissions via email cold. If you want dumb money, then any investor will do. But if you want him or her to add real value to the startup, then you have to do your research and search a good fit in terms of values and goals.

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

September 17th, 2016

Thesis affinity and values.

David Austin Relentless problem solver and innovator.

September 17th, 2016

Experience in VC.