Angel Investor is one of the investor who helps new business to grow. The business that needs some capital may need some money from angel investor. Some big company today was a small company that was supported by angel investor.
Certainly, there are some small companies that fail to grow though they get some money from angel investor.
1. Angel Investor need much money. An angel investor must be rich man whose has million dollar. The angel must have income at least 200,000 dollar last three years. The angel just put 10% of their net worth. They are forbidden to put much money on there. Investing money at a company that not listed in stock market is very risky.
2. He or she knows about legal and business legal. Some angel investors prefer to hire experienced lawyer to delegate the legal. The lawyer may check the legality of the company document. They should be sure that the document is valid.
There is some people who try to cheat the investors with fake document. They create some the legal document that is almost similar to real document.
3. The angel can employs accounting to value the company. The accounting have to due diligence the company so the angle know what is the real value of the company. Most company that need angel investor has unstandardized financial statement so common people will difficult to read and analyze it. It needs an experienced accounting who has some experienced in assessing new company.
4. Experienced in Angel Investment. We can learn from other angel investment. There is some book about angel investors. Write the article about angel investor at newspaper and investment magazine.
5. Understand about business and business plan. A good angel must know whether the business is lucrative or not. An angel must have intuition to judge the business fast. The business is a dynamic activity so the businessman should make a decision on time. If they cannot do that, other businessman will grab the opportunity.
6. Join angel investor club at your town. You can exchange the knowledge and experience with them. Perhaps they have information about a new business that can generate revenue.