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