what is mean by angel? and who love music say me?
Answers
Answer:
When starting any sort of business, you usually need a little bit of cash to get things up and running. If you’re young, you may not have the nest egg to do it yourself, or the credit and collateral to get a loan from the bank or private debt lenders - and if you do it carries a high interest cost.
Your startup business may qualify for grants and incentives from your state, and your big idea may be big enough for seed funds to make small investments in you - but those are high odds with only a select number of winners. They are great when they happen, but you can’t count on them.
So enter the Angels. We’re called angels because we appear out of nowhere and grant the wishes of these entrepreneurs - i.e startup capital. (We don’t just appear. It’s just that most of the time we have no prior relationship with the person.)
Angels are high net worth individuals who make private investments in, and often mentor entrepreneurs as they are just starting their businesses. Usually they can weather the financial storm of either losing all their money (80% of the time) or waiting 5–10 years to see a return on their investment (10% of the time). The remaining 10% of the time we either break even, or get our money back in a 2–5 year timeframe. Often, Angels will pool money together as a group to write a single check to a company and diversify their own risk. The financial vehicle used for this is called a Special Purpose LLC. ( I know cuz have a LOT of them.)
In exchange for the capital we invest, we usually receive a small part of the business. People get an unrealistic expectation of what that amount is when they watch “Shark Tank” where $50,000 gets you 30% of the company, but the reality is that we usually invest 500k and get anywhere from 5–15% of the company.
Every Angel has their own personal reasons for doing this. Some do it as a way to give back, to “stay in the game”, or sometimes as a way to just network with other high net worth individuals. Everyone’s motivations are almost always very personal when you’re doing something that involves high risk and money.
At the end of the day, there are better ways to make money than Angel Investing. I personally believe in the American Dream, and that entrepreneurship is a great way to improve your station in life - So I fund that dream for others and I hope it makes the world a better place for all of us.
I don’t have wings, but I’m still an Angel.