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How does angel investment work?



With an understanding of what angel investment is, the prevalence of angel investors and the the different structures or forms that angel investors take, we will turn our attention to how angel investment actually works.

Similar to the guidance in the Brain’s Guide to Venture Capital, there is no foolproof solution or method to get angel investment. Take the diversity in terms of preferences, attitudes and likes and dislikes of venture capital firms and venture capitalists and multiply it by several orders of magnitude for angel investors.



You have angels who are very active and who invest regularly, you have angels who invest very occasionally and then you have angels who don’t even necessarily know what angel investment is about but are wealthy and might be interested in investing in your business since their background is complementary to the business you are building or who are so taken with your pitch and vision that they wish to invest.

This portion of the Brain’s Guide to Angel Investment covers the following:

  1. What types of businesses get angel investment?
  2. How do you find angel investors
  3. Do you need a business plan when pitching angels?
  4. Best way to pitch an angel investor