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Date of this Version

9-27-2019

Document Type

Book Chapters

Summary

  • Angel investors are wealthy individuals who use their personal assets to invest in startups, typically in early stages before venture capitalists.

  • While angel investors have typically invested more heavily in earlier stage startups, this paradigm has been shifting in recent years.

  • Angel investors are likely to take smaller percentages of equity than a venture capitalist, or use debt-convertible notes, and they may want board representation.

  • It is vital to have investors whose goals are aligned with the company’s.

  • There are six key points investors are listening for in a business pitch: concept, market size/growth, management team, business model, exit scenario, and valuation.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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