Angel Investors
These individuals are often wealthy entrepreneurs and business executives in search of business opportunities and investments, not unlike venture capital firms. Angel investors, however, usually focus on providing the first round of funding for businesses that need less than $1 million in capital. A typical angel investment is between $25,000 and $50,000. Angel investors want equity in exchange for capital—and are, therefore, usually willing to take risks in exchange for a potentially better-than-average return.
You can find angel investors through networking, investment clubs, and online.
Who Should Apply:
Those seeking a first round of funding of less than $1 million in capital
Businesses that do not want to apply for traditional financing, such as a bank loan
Compare:
Advantages
Once investors are found, the loan can be implemented quickly.
Angels do not charge application or processing fees.
Disadvantages
Angel investors may be more involved than you would prefer.
