Angel investors are wealthy professionals or successful entrepreneurs who invest their own money in businesses in exchange for equity. Compared to bank loans or venture capital funding, angel investing is a quick process since there is only one person who needs to be convinced to extend funding, as opposed to a board or a committee of investors. Also, the money is usually given as a lump sum, which gives you the freedom to quickly grow your business, unlike other forms of funding where the money is given over several stages.

You can find angel investors either through your business contacts or through established websites like Sydney AngelsAustralian Investment Network, and Business Angels. Angel investment is an attractive option for budding entrepreneurs; but there are a few things you must know before you take the plunge.

Which Investor is Right For You?

When you are trying to get your business started, it may seem that approaching a broad range of investors increases your chances of getting funding. But this strategy can set you up for trouble later.

Ideally, approach an investor who has experience in your industry and is familiar with your line of business. This is because an angel investor can also play the role of a mentor to the entrepreneur. Therefore, it will help you immensely if the person has solid experience in your industry. Also, since the investor has put his or her hard-earned money into your business, you can expect them to be more involved in critical decision-making. Try to get clarity on how involved they plan to be in your business. If you do not prefer the investor to be too involved in your business, then someone who demands to be part of everyday decision-making may not be the right choice for you.

How Much Money Can You Hope to Raise?

Typical angel investments range from $10,000 to $100,000. Funding can be given through the purchase of stocks, secured or unsecured loans, or convertible promissory notes. Before you sign the funding contract, make sure you get it reviewed by an accountant and a lawyer to ensure the terms of the contract follow your interests.

What Does an Investor Expect to See in the First Meeting?

In your first meeting with the investor, you would be expected to deliver a short pitch on your business. Your pitch should include basic information on your product, the current state of your business in terms of employee strength, market reach, annual turnover, the reasons you are looking for funding, and other relevant data or figures. In the case of new products, carry a prototype or a working model of the product so that it is easy to demonstrate your idea.

What Will an Angel Investor Look For?

An angel investor will look for the following before taking a decision:

  • Market opportunity for your product

  • Amount of funding you hope to raise

  • Experience and qualifications of your core team

  • Credibility of your financial projections

  • Key assumptions in your pitch

  • How your product or service is different from that of your competitor

  • How you intend to use the funds

  • Your marketing strategy

Angel investors are a great value addition to your business because of the mentoring they provide and the important contacts they bring. It is best to be honest in your discussions with a prospective investor to set off the relationship on the right foot. Come prepared with your pitch and make sure you carry supporting documents and relevant data to help the investor make a speedy and well-informed decision.

 

 

 

 

One thing is for certain – in a corporate environment, being a female entrepreneur has its advantages right now, more than ever. The Australian Bureau of Statistics has revealed that women own 34% of businesses in the country. In the US, the numbers are very encouraging, with more than 9.4 million firms in the country bei

ng owned by women according to a 2015 NAWBO stat. These women are also creating more jobs than their male counterparts. Here is a look at the some of the reasons that make them superior to their male counterparts:

They are more likely to seek guidance or guide someone 

Since women are always at the crux of managing their homes and families, while also building their careers, it becomes important for them to learn from examples. Gen Y women entrepreneurs are 34% more likely to seek mentors, compared to Baby Boomers because they understand how mentoring empowers and boosts long-term growth. Budding female entrepreneurs need to align their personal and business goals, and female mentors enable this learning and growth by offering support, filling skill gaps and by leading by example. The good news is that Gen Y entrepreneurs have more mentors than ever before! When the time is right, they will mentor the next generation of budding female business owners. Through this cycle, every subsequent generation of women entrepreneurs will have more and more women will access to mentorship to guide new and upcoming entrepreneurs in their area of expertise.

They like to collaborate and create long-term partnerships in need

Women are more likely to look into building strategic relationships and partnerships, even with the competition. This allows companies to grow by sharing resources and division of labour. The prevalent attitude is that there is enough business to go around, and therefore it is smarter to work with each other rather than against each other! This way, female entrepreneurs have a network to fall back upon and grow with rather than compete with them. Studies find that female entrepreneurs are more likely to work well together towards the collective common good.

They encourage a family friendly company culture

Female bosses are far more encouraging of employees who want to balance family and work. This is inclusive of the flexible option of working from home, which reduces onsite presence without compromising on productivity. The shift has been especially beneficial to female business owners who get the space to grow professionally, while keeping the work-life balance intact.

They possess a superior emotional quotient 

Emotional quotient is the ability to understand, process and perceive emotions – either their own, or those of others’. This is the core quality required for a good leader, to be empathetic towards the feelings of others, listening with the intent to understand and help employees efficiently and effectively tackle their problems at work. Therefore, this gives women an edge over male bosses as it makes them better at leading their team and creating feelings of loyalty.

Studies have proven that women who have started companies on their own have a far greater sense of work satisfaction than their male counterparts. With their ability to multitask, women handle multiple responsibilities at the same time, while working their own hours and making full use of their strengths and capabilities. When they feel like they are using their complete potential, they are much happier than their male counterparts, giving them immense job satisfaction.