As you start your entrepreneurial journey, you may be wondering how to secure funding for your innovative idea. One way to get the ball rolling is by finding angel investors who can provide the necessary investment to get your business off the ground.
Angel investors are high net worth individuals who invest their own money in startups in exchange for equity. They are often successful entrepreneurs, executives, or professionals who have a keen eye for spotting potential in new businesses.
Some notable angel investors include Ron Conway, who has invested in companies like Google, Facebook, and Twitter, and Steve Blank, who has invested in companies like LinkedIn and Dropbox.
Angel investors typically invest between $25,000 and $500,000 in startups, with the average investment ranging from $100,000 to $200,000.
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Funding Sources
Angel investors typically invest their own funds, making them a unique source of funding for startups. Unlike venture capitalists, who manage pooled money from others, angel investors often use trusts, businesses, or other vehicles to provide funding.
On a similar theme: Angel Group Funding
Angel capital fills a crucial gap in seed funding between friends and family rounds and more robust start-up financing through venture capital. This gap is significant, as traditional venture capital funds usually can't make or evaluate small investments under $1-2 million.
The combined value of all angel investments in the US almost reaches the combined value of all US venture capital funds. In 2010, angel investors put in $20.1 billion, compared to $23.26 billion from venture capital funds.
Angel investors invest in many more companies than venture capital firms. In the US, angel investors invested in over 61,900 companies in 2010, while venture capital firms invested in just 1,012 companies.
Angel investments can range from a few thousand to a few million dollars. There is no set amount for angel investors.
The healthcare/medical industry accounted for the largest share of angel investments in 2010, with 30% of total angel investments. This was followed by software, biotech, industrial/energy, retail, and IT services.
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Investor Profiles
If you're looking for a comprehensive angel investors list, you're in luck because there are some great resources out there. Trace Cohen from NYVP has created a list of over 400 active angel investors in the US, which includes their investment thesis and direct email address, most of the time.
Having access to a list like this can be super helpful when trying to find the right investors for your startup. Airtree Ventures offers a list of angel investors and angel syndicates for Australia-based startups, which is a great resource for those in the region.
This list from Airtree Ventures is particularly impressive, with over 180 angels and syndicates that invest in Australia. It's clean, rich with information, and definitely worth checking out.
If you're looking for a list of active angel investors, be sure to check out Trace Cohen's list, which is a great starting point for your investor search.
Investor Networks
The Carolina Angel Network at the University of North Carolina is a great example of an investor network, connecting alumni, donors, and friends of UNC to early-stage companies.
Duke Capital Partners is another notable network, dedicated to supporting and cultivating the Duke entrepreneurial community.
The Wolfpack Investor Network at NC State brings together the entrepreneurial community, alumni network, and innovative private companies to empower businesses that drive the future.
There are over 400 active angel investors in the US, listed by Trace Cohen from NYVP.
Folk has compiled a list of 2,000+ US funds, accelerators, and angels.
The Airtree Ventures list features 180+ angels and syndicates that invest in Australia.
Here are some notable investor networks:
- Alliance of Angels: A collective of angel investors in the Pacific Northwest
- Angelmatch: A database containing over 90,000 investors with contact details and links to social media profiles
- Angel Capital Association: A US-based association with over 14,000 registered angel investors worldwide
- European Business Angels Network: A platform connecting startups across over 50 countries with the right funding
- Leapfunder: A platform connecting European angel investors and startups
- NACO: Offers angel investment for startups in Canada
- Nexea: Offers angel investment for tech businesses across South East Asia
- VentureSouth: Focuses on angel investment in the American South East, investing up to $1m in startups
Directories and Guides
First Round's free angel directory contains 365 US angels sorted by location, check size, thesis, and value add. You'll need to sign up to access it, but it's worth it.
The NYC Founder Guide is a directory of 98 VCs and angels investing in NYC, with typical filters and plenty of information to find good prospective investors.
Folk's list includes 2,000+ US funds, accelerators, and angels, mostly from the US. It's a well-structured list that's been shared on social media.
Crunchbase is a website that provides a list of active investors, as well as upcoming networking events.
Investor Lists
There are many resources available for finding angel investors, including lists and directories.
Trace Cohen's list contains over 400 active angel investors in the US, along with their investment thesis and direct email addresses.
You can also check out Folk, which offers a list of over 2,000 US funds, accelerators, and angels, mostly based in the US.
Another useful resource is Airtree, which lists over 180 angel investors and syndicates that invest in Australia.
Intriguing read: Contact Lists Differ
US Funds Accelerators and Investors
US Funds, Accelerators, and Investors are a key part of the startup ecosystem, providing crucial funding and support to early-stage companies.
One of the most comprehensive lists of US funds, accelerators, and angels is available on Folk, a platform that aggregates venture capital data. This list includes over 2,000 US funds, accelerators, and angels.
Folk's US VC list is a well-structured resource that can be accessed through their website or shared link. It's a great starting point for entrepreneurs looking to connect with potential investors.
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Another useful resource is the Ultimate List of VCs, which provides a comprehensive directory of venture capital firms in the US.
Angelmatch is a database that contains over 90,000 investors, with contact details and links to social media profiles. This can be a valuable tool for startups looking to connect with potential investors.
For a more targeted approach, you can also consider the following organizations:
- Band of Angels, a collective of angel investors based in Silicon Valley with over $400m in investments since 1994
- Golden Seeds, a US-based investment group for women-led startups
- Newable, which specializes in investing in deep tech, including AI and robotics
- VentureSouth, which focuses on angel investment in the American South East and can invest up to $1m in startups
These organizations can provide valuable connections and resources for startups looking to secure funding and support.
Trace 400+ US Investors
Trace Cohen created a list of 400+ active angel investors in the US, which is a valuable resource for startups looking for funding. This list includes the investment thesis and direct email address of many investors.
Angel investors typically invest their own funds, unlike venture capitalists who manage pooled money. They often invest in startups with high growth potential and a clear exit strategy. In the US, angel investors invest in more than 60 times as many companies as venture capital firms.
The list by Trace Cohen is a great starting point for startups looking to connect with angel investors. It's essential to research and understand the investment thesis and preferences of each investor to increase the chances of securing funding.
Specific Investors
If you're looking for a list of specific angel investors, you're in luck. There are several options available.
The NYVP list by Trace Cohen contains over 400 active angel investors in the US, along with their investment thesis and direct email address. This is a valuable resource for startups looking to connect with potential investors.
Another option is the Folk list, which features 2,000+ US funds, accelerators, and angels. You can find it on the Folk app.
Angel Investors for Apps
Angel investors can be a great source of funding for your app, but it's essential to understand how they work and what they're looking for. Angel investors typically invest their own money, ranging from $10,000 to $250,000, in exchange for equity in your company.
If you're looking for seed funding to develop your business idea or launch your custom MVP app to new markets, angel investors can be a good fit. They often have a network of contacts and can provide valuable advice, having been startup founders themselves.
There are over 320,000 angel investors in Europe alone, so finding the right one can be a challenge. You can find angel investment and funding through various organizations, such as the Alliance of Angels, which is a collective of angel investors in the Pacific Northwest.
Some angel investors specialize in specific industries or sectors, like the Green Angel Syndicate, which focuses on startups dedicated to reducing the impact of climate change. Others, like the Harvard Business School Alumni Angels Association, have a global network and can connect you with potential investors.
To increase your chances of getting angel investment, make sure your app has a clear and compelling pitch, and be prepared to demonstrate your team's expertise and dedication to your project.
Airtree 180 Investors Australia
Airtree 180 Investors Australia is a great resource for startups looking to connect with angel investors in Australia. Airtree Ventures maintains a list of angel investors and angel syndicates that invest in Australia.
This list is rich with information and is highly recommended. Airtree's list contains 180+ angels and syndicates that invest in Australia.
You can find Airtree's list online, and it's a great place to start your search for Australian angel investors. Airtree Ventures offers a clean and organized directory that's easy to navigate.
Airtree's list is a valuable resource for startups looking to expand into the Australian market.
Richard Fearn
Richard Fearn is a seasoned investor and advisor with a focus on B2B SaaS, Entertainment, and Media.
He has shifted his attention from advertising to start-ups and has learned a lot from advising over 50 early-stage companies.
As an investor, Richard has had the opportunity to work with notable portfolio companies like Sofar Sounds, Blaze, Dojo, and What3Words.
Richard is also the co-founder of the 'Friday Club London,' a non-profit events company that provides start-ups with free access to senior marketing expertise.
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Frequently Asked Questions
How much do you pay an angel investor?
Angel investors typically invest between 10% to 40% of your business in exchange for equity, with the exact amount depending on your company's growth potential and willingness to share ownership.
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