Optimize with impact: landing page software for angel-backed startups

Above all, angel investors are looking for a high rate of return on their initial investment. Theyll want to know if the business idea fills a gap in the market with potential for significant growth. The product or service should be new and exciting so youll need a heavy-hitting, detailed pitch to sell it.

An angel investor typically gets paid through a return on their investment, either when the company they invested in goes public or is acquired. This return can be structured in the form of a one-time payout, or through a series of payments over time.

Dividends. One of the most straightforward ways for companies to pay back their investors is through dividends. A dividend is the distribution of some of a companys profits to its shareholders, either in the form of cash or additional stock.

Compared to venture capitalists, angels may also be more patient with entrepreneurs and open to providing smaller dollar amounts for a longer time period. But they do want to see an exit strategy at some point where they can pocket their profits, typically through a public offering or an acquisition.

An exit strategy is a business owners strategic plan to sell ownership in a company to investors or another company. It outlines a process to reduce or liquidate ownership in a business and, if the business is successful, make a substantial profit.

An entrepreneur may seek an angel investor over more conventional financing. The terms tend to be more favorable and, in fact, the angel investor doesnt expect to get the money back unless the idea succeeds. They often seek an equity stake and a seat on the board.

Angel investors are wealthy individuals who provide capital for small businesses in exchange for equity. Unlike venture capitalists, who tend to invest large sums of money in established companies, angel investors typically invest smaller sums of money in early-stage businesses.

What Percentage Do Angel Investors Want? The more money an angel investor gives your business, they more theyll expect a bigger return on investment (ROI). The ROI expectation varies between angels and the specific investing opportunity. Its not uncommon for an angel investor to expect a 30% return on their money.

AngelList. AngelList is a massive startup platform. Angel Investment Network. The Angel Investment Network is a global community of investors and entrepreneurs looking for capital. ACA. Angel Forum. Gust. FundingPost.

Here are a few tips for leaning on your fellow founders to scout angel investors: Ask for introductions. If a fellow founder knows an angel investor who might be interested in your startup, dont hesitate to ask for an introduction. Seek advice. Participate in founder groups. Leverage mutual connections.