Want to Reach Entrepreneurial Heaven? Ask an Angel
- Topics:
- Angel Investment
- Tags:
- Angel,
- Entrepreneurial,
- Entrepreneurship,
- Management
- Source:
- Knowledge@Wharton
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Overview: Drawn by the allure of the spectacular returns rung up by some start-up companies over the past several years, a growing band of angels has pumped new energy–and tens of billions of dollars–into start-ups. Often, the recipients of these investments are little more than an enthusiastic entrepreneur and a rough-around-the-edges business concept. Though exact numbers are hard to come by, active angels are believed to number more than 1 million. According to estimates from the Center for Venture Research at the University of New Hampshire, angels invest a total of more than $40 billion a year in 50,000 companies. They are risk takers for whom the payoff for a good investment may be a decade down the road. Angels take many different forms. They may be an entrepreneur's friends or family members, a professional who has accumulated a fair amount of wealth, or an entrepreneur who has created a successful business and is seeking a way to put some of his or her capital to work. The ideal angel is someone who is a generation ahead of everybody in creating value in the industry that the product will serve. They will provide financial capital as well as intellectual capital, which could be even more important than the money. Angels are often there to help you get going when no one else will.
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Format: HTML | Date: Jul 2000 | Pages: 1
