Who are Angel Investors?
An Angel could be a high net worth individual with a net income in excess of US$100K or with net assets in excess of US$250K beyond pension fund assets and private properties.
He or she might also be a sophisticated investor and is one of the following:
- A director of a company turning over at least US$500K per annum
- Have made more than one investment in an unlisted company
- A member of a network or syndicate of business angels for at least six months
- Have worked in a professional capacity in the private equity or venture capital sector or in the provision of finance for small and medium enterprises
How much money do I need to be an Angel Investor?
Most Angels invest between 5-20% of their personal disposable wealth (excluding their principal private residence, pensions, and life insurance). Potential investors should take account of their own financial commitments. However, they should take advice from their personal financial advisor about planning their investments to identify what level of angel investment is right for them.
How much available time do I need?
Many Angels fit their investments around a range of other activities. They can adapt it to their availability, taking account of their work and other time commitments, or they may be retired and have more time at their disposal. Azione helps to identify and select investment opportunities and where they can invest in syndication alongside more experienced Angels.
How much do Angels invest in a business?
In general, Angels will invest anywhere between US$10K and US$300K in a single venture, depending on the business and the growth needs. Also with an increasing trend towards Angels investing in groups and syndicates, larger amounts of finance above US$2 million can be raised by pooling their finance and also their business skills. It is also advisable to take a portfolio approach to spread their investments and thereby spread their risks and increase their opportunities for returns.