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Entering into a relationship with an angel investor can be a huge business funding benefit to a new startup company. A large infusion of cash can go a long way towards purchases of needed inventory, machinery, employee salaries or any number of vital expenses for a growing business. However, angel investors come in many shapes and sizes. Each one is also motivated to invest by many different reasons. Discovering that specific motivation can help you decide if you are partnering with the right angel investor for your company.

  • Money
    Almost all angel investors are interested in making a decent return on their investment, with some more concerned with it than others. Those who join with other angels to form angel groups – one step away from venture capitalists – are especially interested in creating rising profits.
  • Personal Relationship
    Some angel investors are eager to invest in your business because they know you personally and either want you to succeed because they care about you or they are familiar with your work ethic and skills and trust your judgement in business matters. These can be great assets to have on board as long as they are still willing to ask you hard questions and keep you continually seeking for the best path forward.
  • Interest in Supporting Community
    Others are passionate about the local community and want to see it thrive, or in some cases, revitalized. These individuals will be looking to invest in companies that are going to improve the surrounding area, keeping the money local and create jobs within the community.
  • Desire to Pass on Expertise
    Angel investors who are nearing retirement or who already have retired may want to “pay it forward,” passing on the experience and knowledge they have gained in their field to fledgling companies. If you can find this type of angel investor in your market, they have the potential to become an excellent mentor to you as you grow your business.
  • Need for a Challenge
    Still others are motivated to invest simply for the fun of it – the challenge it provides. These investors can certainly be helpful in terms of cash, but it helps to find out if they are also committed to your goals and ideas.

By doing some background research on potential angel investors and even getting to know them personally, you will have much more success in partnering with one who will take your business to the next level.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources