Below you will find a very brief overview of working with Angel Investors. We also have a list of Angel Investor Groups in North Carolina.
What is an Angel Investor?
Startup companies looking for funding have may options. Once a company has used its own money from the founders, and has reached out to friends and family, it is ready to reach out to new investors. At a future stage, when a startup will need to raise more than $1 million, it may make sense to reach out to Venture Capital Firms. We have a page dedicated to where to find Venture Capital Firms. For companies that need less than $1 million, but have a viable and high return potential business. Angel Investors, and Angel Investor Groups invest in a company, taking equity (albeit a smaller amount that a Venture Capitalist would), and often times they bring connections and an advisory background to the company.
Who is the typical Angel Investor?
- has an income that exceeds $100,000
- is 40 to 60 years old
- has a net worth in excess of $1,000,000
- has previous successful entrepreneurial experience
- expects to hold on the investment for up to five to seven years (although some angels wish to “cash out” after only a few years)
- enjoys advising the entrepreneur and likes to be part of the action
- invests up to $150,000 but may participate in a syndicate of other angel investors bringing the total investment to multiples of individual investments
- refers deals to other private investors even if the angel has chosen not to invest
- likes to invest in an industry with which the angel is familiar
- sources deals through referrals.
What kind of lawyer should I engage when speaking with an Angel Investor?
It is important to find a startup lawyer that has raised money from Angel Investors and Angel Groups in the past. These deals can vary greatly in how they are structured, and the right attorney can help you structure a good relationship with an angel investor in the RTP, and Raleigh Durham NC.
Where to find Angel Investors?
How to find Angel Investors can be a tricky question. Finding an angel investor in North Carolina may be a simple as speaking with a family friend who has money, or finding angel money may be as involved as pitching to an Angel Investor Network, or Angel Investor Group. There are many angels in NC, and especially in the Raleigh Durham NC area. We have compiled a list of Angel Groups and Angel Networks, not only in the RTP, Raleigh, and Durham, but throughout NC. This is not a complete list of Angel Investment Groups by any means in the area, but is a good starting point. When raising capital, it is important to remember that Angels draw upon their backgrounds and expertise in Durham and Raleigh, often times focus their investments in a particular sector. The Barnes Law Firm can help walk you through the options both when it comes to fundraising, and getting ready to pitch to Angel Investment Firms.