Angel Investing by cmlang

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									by: Jakob Jelling

Angel investing helps entrepreneurs open start-up businesses.

Angel investing is right for you if you want to get involved with new businesses. It can be a
dangerous investment, so you should always make sure that the business you are funding looks
as though it has a good chance of actually turning a profit. If you are at all unsure of the business
then you should give it a pass. Angel investing also requires that you have large amounts of
money to start with, since you're essentially going to have to give out huge loans to start-up
companies.

If you are trying to start-up your own company, then you'll want to look for an angel investor.
The reason for this is that most people just do not have the money on hand to start up their first
business. Therefore, you should look for somebody who has enough capital to spend on your
venture - venture capitalists. While there are a few new businesses who manage to get money
from the professional venture capital firms, this is not very likely. As a result, you'll want to look
for the so-called angel investors - these are very wealthy individuals who want to make high-risk
investments.

While it sounds at first that it might be hard to find somebody who is interested in angel
investing, it is not all that difficult. In fact, many more new start up businesses are funded
through angel investing than through venture capital investments. It's also possible that you will
eventually get venture capital funding after you manage to find somebody interested in angel
investments - due to the growth of your business.

One thing that makes this difficult, however, is that it is very difficult to figure out exactly what
angel investors are likely to invest their money in. Therefore, you'll have to do a lot of work in
order to make your business look desirable. It might be hard to make it desirable to angel
investors who are looking for specific features, but the biggest thing you will need to do is to
make your business look as though it will definitely be profitable. Once you have a profitable
business plan, you should be able to find angel investing - but make sure that your business also
has a chance to be high-growth!

This article was posted on September 19, 2005
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