Angel Funding
Private investors who possess substantial wealth concentrate on funding small business ventures in return for ownership stakes.
Loan Amount
$25,000-$100,000
Loan Term
1-5 Years
Tied to the Type of Your Project
Time to Fund
Interest Rate
25%-60%
What is a Angel Funding?
Contrary to venture capital firms, which rely on investment funds, angel investors utilize their personal net worth. Angels may exhibit more tolerance towards entrepreneurs and may also be willing to offer smaller amounts of funding over a more extended period. However, they do require an eventual exit strategy, typically through a public offering or acquisition, where they can realize their gains.
What are the Benefits?
Less risk
If you obtain financing from an angel investor, the level of risk is usually lower compared to taking out a small business loan. Unlike loans, you are not obligated to repay the funding received from an angel investor since they receive ownership in exchange for providing financial support.
Mentorship
Angel investors possess considerable business experience, which enables them to offer mentorship to the startup. They are highly motivated to ensure the business thrives and can provide invaluable insights and guidance.
Credibility
By supporting a business, angel investors confer credibility and a positive reputation in the industry to the organization. Their endorsement indicates that they have faith in the potential success of the business, which can draw the attention of other investors and funding to the project.