Private Investors/Business Angels

April 13, 2006

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A less-formal source for external equity financing is through private investors, called "angels," who are seeking new business investments for a variety of economic and personal reasons. Angels can be a very good source of money if you are looking for outside investors but you are not interested in, or not a likely target for, a venture capital firm. Although angels tend to be less demanding in their financing terms than venture capital firms, you should still exercise great caution in ensuring that your "angel" financier doesn't turn out to be a devil in disguise.

What do angels look like? Frequently they are other small business owners, or former owners, in your community.
Angel networks can put you in touch with potential investors around the country.