by Kim Lavine
Angel Investors have different thresholds and expectations for investing in companies than Venture Capitalists. Here's what you need to know.
- Angel Investors have to be certified by the SEC to be "high net worth individuals" with minimum liquid assets (cash) of $2,000,000 and minimum average salaries of $250,000 a year.
- They are private investors who specialize in high-growth fields and involve themselves directly in management of the endeavors they fund, usually forming "strategic alliances," where they merge their resources/experience/companies with that of a fledgling company on the cusp of exponential growth, while reaping financial returns much higher than any other traditional investment vehicle typically available.
- Angels fund thirty to forty times as many companies as venture capitalists every year.