Angel Investment

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Angel Investment is an informal concept in investment, with high network individuals that are “qualified investors” make small investments in early stage startup companies. Angel investors are often semi-retired entrepreneurs, company founders that may be less interested in starting new companies than helping others launch their dreams.

Angel Investors may invest individually, or as part of a network of investors that invest collectively. The goal of the group is usually to earn a return while supporting the growth in their local business community. The Angel will take in a large equity position for the investor, which is necessary because most of the ventures backed by angel investment don’t survive.

In addition to capital, an angel investor should bring knowledge, contacts, and opportunities to their investment. Many angels have connections to private equity or venture capital, which results in an advantage when moving to the next level of financing.

Angel investors may not require formal GAAP accounting like a Venture Capital firm will, but they will require some formal accounting system to make sure that their investment is used responsibly. Bette’s first startup accounting job was while she was an undergraduate at the Massachusetts Institute of Technology (MIT), and that experience has led to her working with startup companies of all stages.

If your startup company is venture or angel backed, or plans to seek angel or venture funding, proper Startup Accounting Systems are necessary to ensure your success. We work with funded startups of all sizes, helping them organize their financial and accounting systems to be responsible stewards of angel investment capital.

Venture Capital vs Angel Investors Explained

By |2022-05-09T23:25:47-04:00November 9th, 2021|Categories: |Tags: , , , |

Entrepreneurs should consider the pros and cons before taking in venture capital or Angel Investments. The early stage financing can launch a high growth business, but also puts demands on the team to hit these growth targets.

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