Angel investors can be individuals, groups or “Super Angels”. The overall approach for this type of investment is the same. The difference is in the size of the fund, the amount they are willing to lend, and the return they want on their investment. Angel investors are not just looking for a project to throw their money at. They are also looking for resources they can provide to the entrepreneurs in order to get them past hurdles they are facing. They will often offer key introductions and networking that can make the difference between success and failure for the company.
The down side is that they want a solid exit strategy when they invest. There is also and added sense of accountability to the investor. Milestones are critical and goodwill can turn south if you are not meeting those deadlines.
Individual Angel Expectations:
