Fri, 5 August 2022
Where Does the Angel Play? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. So, what startups do angel investors pursue? Angel investors invest in high-growth startups, most often tech-enabled. Restaurants, retail, and service businesses are not necessarily a fit for angel investors. Angels seek a return on investment in the range of 44% IRR. While some angels are looking for home runs, most angels invest in deals that are singles and doubles for returns as they don’t have the deep pockets to fund a startup all the way. Angels look for capital-efficient deals and have the opportunity to scale. Those startups with recurring revenue are preferred. Angels invest in businesses that, for the most part, have an initial product and are going into the market. They look for companies that, for the most part, can run themselves. Unlike the VC, which earns a paycheck through their management fee, the angel has no management fee, so all costs come out of pocket, and all time comes from the angel investor’s own time. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |