Australian early stage angel investors often treat start-up investing like horse racing. They punt with money they're willing to lose, but this approach has led to a lack of discipline and very poor returns.
You have a good business - it's new but it is up and running and doing well. You are at a point where you need to increase your production capabilities and your marketing budget to become a more profitable company and a force in your industry. The goal here is that you need to raise capital to accomplish both these goals. How do you find the needed capital?
Your startup’s future hinges upon your ability to secure two key ingredients for success: money and great people. Angel investors are among the best resources for these, however, angel investors vary widely in their expertise and abilities. Below is a look at the top qualities to seek in an angel and some key traits to avoid as you meet potential investors.
As an entrepreneur looking for startup capital and advice, it's a good idea to stay connected to as many experts as possible. One way to ensure you have a good handle on all of the venture capital opportunities available to you is to keep up-to-date with angel investor culture. Reading angel investor blogs is a great way to do this, while also gaining valuable new business insights that can help your startup succeed.
Being an investor, advisor and founder of several companies I can say that having smart, motivated, connected and culturally aligned investors is such an incredible benefit to a startup.
The right investors can make all the difference. The doors they can open and the credibility they can give founders cannot be understated. I’ve seen startups that have no track record or traction meet and negotiate huge deals with some of the biggest companies in the world because of the assistance of their advisory board.
An angel investor or business angel is basically any private investor who finances early-stage enterprises. Even though anyone with sufficient personal wealth can become an angel investor, such people are often entrepreneurs or retired executives with business experience. With the growth of startup culture business angels and more recently angel groups and syndicates are becoming more and more common. According to the Center of Venture Research, the US alone had about 300,000 active angels that collectively invest over $24 billion per year.