ESSENTIAL THINGS TO KNOW ABOUT ANGEL INVESTORS

1.What is an angel investor?

What is an angel investor: An angel investor, also known as a seed investor, is an individual or organization with a sizeable net worth, often providing financial support to companies. Start-up or small company to exchange for company equity.

Angel investing is a private equity investment in which high-net-worth investors accept more risk than public market investments to earn more significant returns.

Angel investors often provide financial support to start-ups.

So, who is an angel investor: Usually, angel investors have a good family background or network, and most come from business families.

2.What is the nature of an angel investor?

Angel investors are people who invest in start-ups in the early stages. This type of investment is risky and usually makes up very little of an investor's portfolio - generally, at most, 10% of an angel's portfolio.

However, angel investors often need more funds and seek higher return rates than traditional investment methods. They invest in business owners starting a business rather than the existence of the company and often offer more favorable terms.

Angel investors focus on helping start-ups grow rather than making immediate profits. Angel investors can make a one-time investment to help start a company with a fair amount of risk, but the returns can be very high if successful.

Capital from angel investors is often used to research and develop business strategies. Investors can continue to invest in helping the company overcome difficulties if there is potential for growth and recovery dress.

3.Pros and cons of raising capital from angel investors

• Advantages of raising capital from angel investors

Angel investors take on higher risks than traditional investors and generally do not require a return on capital - which is a massive advantage for start-ups.

Partnering with angel investors also offers many benefits, including learning from experienced entrepreneurs and financial support for product development or revenue growth.

Although the amount of capital contributed is not too large, angel investors can still group forces and contribute money to support small businesses. The total amount donated can be up to 1 million USD.

• Disadvantages of raising capital from angel investors

One limitation when raising capital from angel investors is that they often want a significant stake, ranging from 10 to 50% of the shares - which means that the business owner can lose control of the company. Therefore, business owners should carefully consider the amount of capital the owner wants.

The second limit mode when raising capital from angel investors is funding because angel investors usually invest their own money, unlike venture capitalists who use managed risk.

Once you understand what an angel investor is and the pros and cons of raising capital from an angel investor, let's explore ways to find angel investors with INMERGERS.

4.How to find angel investors

Angels can be classified into two groups: associated and unaffiliated. An affiliate angel is someone related to you or your business but not necessarily related or acquainted with you. An unaffiliated angel has no connection to you or your business.

How to find angel investors

Angel investors can be professionals such as doctors, lawyers; business partners such as executives, suppliers, customers, and even other entrepreneurs.

Get started with existing contacts

First, prioritize finding affiliate angel investors because they are familiar with you or your business and are interested in the relationship. Start by recording the names of people who might be a good match, including: Expert; Business associates (suppliers, customers, employees, competitors),..

Find an unaffiliated angel investor

If no promising prospects emerge from your current network of relationships, reach out to unaffiliated angel investors, including:

• Expert
• Middle managers
• Businessmen
• Advertisement
• Business circles
• Telemarketing
• Internet
• Third intermediary
• Investment matching platforms like INMERGERS.

5.Angel investment situation in the world

According to data published at the World Business Angels Investment Forum 2019, the value of angel investments worldwide has increased continuously over the years. In 2019, the total value of angel investments was around $60 billion, up 20% from 2018 ($50 billion), and is forecast to grow to $250 billion within the next 5 to 7 years.

Crunchbase news statistics show that the number of start-ups invested by angel investors has increased continuously over the years.

Crunchbase Q4/EOY 2019 Global Angel Investment Report

In Asia, Southeast Asia is the region with the most active angel investment activity. The start-up ecosystem of 6 countries in the area, including Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines, is increasingly complete and promotes the development of start-ups in these countries.

The growing network of angel investors globally and in the region shows today's general trend in angel investment activities.

6.Angel investors in Vietnam.

List of angel investors in Vietnam, including:

• Vietnam Science and Technology Business Start-up Fund
• Innovation Hub Investment Joint Stock Company
• National Start-up and Investment Private Joint Stock Company
• Vietnam Management Consulting Joint Stock Company
• Angels 4 Us Co., Ltd
• Han River Start-up Incubation Center
• Hanoi Polytechnic Technology Development Investment Joint Stock Company
• Capella Vietnam Joint Stock Company
• Hanoi Young Business Association.

Also included are Investors in the Shark Tank Vietnam program.

These organizations are committed to building and developing the Vietnamese angel investor network (iAngel Network) to become the first destination for young people to start a business when they have financial and non-financial needs.

Conclude

Above are answers to the term angel investors and some things to know about them, like the advantages and disadvantages of raising capital from angel investors or how to find them.

If you are looking for investment opportunities for your business, join MMatch - the pioneering international business buying and selling platform in the M&A 4.0 era developed by INMERGER to find investment opportunities. Attractive international.