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What are the Top Qualities to Look for in Angel Investors?

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When starting a business it can be easy to focus on the wrong things, not nurturing your idea into a fully-fledged business with a clear route to market. This is why many founders look for an Angel Investor when their business is still in its infancy.

An Angel Investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Providing the funds to take your business to the next stage, it is important that when carrying out this initial funding round you bring the right people on board. Eager to help the forever-growing community of Welsh start-ups, here are just a few qualities to look for when searching for an Angel Investor.

Strategically-minded

The start-up world is risky territory, meaning founders need to partner with investors that can add value to their idea and help steer the business in the right direction. This is why looking for an Angel Investor that is strategically-minded is advisable, allowing someone else to build out a holistic strategy that will give your business the best chance now and in many years to come.

Helping you put objectives and KPIs in place, a strategic investor should turn your business idea into a flourishing company.

Connector

While financial support is always welcome when building out a business, sometimes the value of a connection can exceed anything money can buy. As a result, choosing an Angel that is a connector can in itself be a strategic plan. If a particular investor has a strong network made up of leaders within your space, then they could potentially accelerate your business into the realms of success a lot quicker than you and your team could without their input. From helping you form business-to-business connections to giving you access to a pool of potential clients, the opportunities that can come from a well-connected investor are limitless.

Credibility

As a start-up it can be hard to gain credibility, not having the ultimate test of time on your side. By bringing someone onto the board that does, your business’ profile is immediately enhanced, building a team with the right tools to take the business to its limits.

The full package

While many look at investors as people that simply fund an idea, if you find an Angel Investor whose intangible value to you/your company equals or exceeds that of the funding, you’re on to something great!