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What is the profile of an angel investor?

An angel investor might be a successful business person, a wealthy individual, a group of professionals such as doctors or dentists, or a participant in a local investment club.

The profile of a typical angel investor is given below:

  • The average angel investor is under 50 years of age
  • Angels are affluent, but not necessarily millionaires
  • Most are college educated and self employed
  • Most angels invest close to home (seven out of 10 investments are within 50 miles of their home or office)
  • Angels usually don’t invest more than a few hundred thousand dollars in any one company
  • Nine out of ten investments are given to small, start-up firms with fewer than 20 employees
  • Most angels invest in business areas that they are familiar with and have some expertise
  • Minimum expected return on their investment is 30 percent annually, but many want a much higher return – each angel will have their own requirements
  • They are risk takers, expecting about one-third of their investments to result in a capital loss
  • Angels accept an average of three out of every ten deals they are willing to consider
  • Most angels are successful entrepreneurs who want to help other entrepreneurs get a business off the ground
  • Angels typically offer expertise, experience, and contacts in addition to money