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.
