A SIMPLE GUIDE TO ANGEL INVESTORS




If you are looking for high net worth individuals Texas USA to fund your business, you have come to the correct place. Understanding the type of investors and being one is a very typical task in particular. So, here we have a simple guide for you to get a better understanding of angel investors.


What are Angel Investors?

Angel investors are individuals that provide capital for startup business funding. The investment may be one time or in the form of ongoing injections. They usually invest in the business in exchange for ownership equity or convertible debt. They may also invest through crowdfunding platforms or form networks such as Angel Networks Austin Texas to pool in the capital.


Where did they originate from?

The term ‘angel’ came originally from Broadway theatre which would have shut down if not funded. The wealthy individuals who funded the theatrical productions were called ‘angels’. William Wetzel, a professor at the University of New Hampshire and founder of its Center for Venture Research, studied about how entrepreneurs gathered capital and used the term ‘angel investors’ for the people who financed and supported them.


What are their sources of funding?

Because of being so wealthy, it is obvious that they use their own money to fund startups. Though they are represented as individuals, the capital that they invest may come from a business, trust, investment fund etc. You can listen to Angel investor discussion online to know more about the funding sources and processes.


Who can be Angel investors?

Not every wealthy individual can be an Angel investor. Only the ones who meet the Securities Exchange Commission's (SEC) standards for accredited investors can become Angel investors. Moreover, they must essentially have a minimum net worth of $1 million and an annual income of $200,000.



As may be clear by now, angel investors are the ‘angels’ that will help your business to take off and sometimes may assist you even further. Apart from Angel investors, you can know more about other investors by listening to venture capital funds discussion. 
Location: Austin, TX, USA

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