What is Angel investing?

What is Angel investing?

All businesses need money. Startup ventures need money to get started. They need ongoing injections of capital and access to cash to keep growing. Today, that seems like a virtually indefinite need. It is not about just ‘getting funded’ and then being set once and for all.

You may be surprised at the financial needs of companies that are even bringing in billions of dollars each year.

Angel investing is happening on the private markets, so there is no market price that builds on the vast amount of liquidity on the stock market. Therefore, you have to do your own valuation of the company.

Angel investors can invest in start-ups, early-stage companies, and growth companies that are not yet listed on the public market. They carry a higher risk, and you need to be savvy to understand their business model, financial needs, the size of their market, and how much they will be able to capture. You want to see their roadmap and financial model and come up with your own valuation of the company. This requires a greater and more sophisticated toolkit than just for investing into pubic market where you get the market price that builds up on the stock exchange.

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