{"id":2439,"date":"2017-09-07T12:24:34","date_gmt":"2017-09-07T16:24:34","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=2439"},"modified":"2026-02-12T05:38:14","modified_gmt":"2026-02-12T10:38:14","slug":"angel-investment","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/angel-investment\/","title":{"rendered":"When to seek angel investment"},"content":{"rendered":"
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\n\t\t\t\t\t\tWhen to seek angel investment\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tStacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Building a business requires capital. You may be set with your own funds, or tapping into savings or credit, but another option for entrepreneurs is an angel investment.<\/span><\/p>\n\n\n\n

What is angel investment? <\/strong><\/h2>\n\n\n\n

The term, \u201cangel investor,\u201d coined by Professor Bill Wetzel of the University of New Hampshire in 1978, to describe early-stage investors, has gained a lot of cache over the past two decades. Angels invest their own money in a business with the hope of accelerating or kick-starting growth and receiving a return. Research has found that angel-funded businesses succeed at a higher rate than those that have other financings, and angel investors fund more than 16 times as many companies<\/a> as venture capitalists.<\/span><\/p>\n\n\n\n

While it is difficult to track, according to a survey by the Center for Venture Research<\/a> at the University of New Hampshire, the total U.S. angel market grew from $17.6 billion in 2009 to $24.1 billion in 2015<\/span>, and the average investment that a business receives from an angel investor is $347,000. <\/span><\/p>\n\n\n\n

There are various types of angel investors, and some are even accessible online.<\/span><\/p>\n\n\n\n

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  1. Individual angel investors who are personal contacts, friends, and former colleagues.\u00a0<\/span><\/li>\n\n\n\n
  2. Online angel investors via accredited platforms such as\u00a0<\/span>AngelList<\/span><\/a>, SeedInvest, and Portfolia.<\/span><\/li>\n\n\n\n
  3. Angel groups like\u00a0Pipeline Angels<\/a>, 37 Angels, and Astia.<\/span><\/li>\n<\/ol>\n\n\n\n

    For entrepreneurs, the move to engage an investor is a serious one. It typically involves releasing some ownership stake, or a level of control in the direction of the company. On the plus side, a well-heeled and well-connected stakeholder might be just what the business needs to achieve additional success. In most situations, angels will integrate regulations into what the entrepreneur can do.<\/span><\/p>\n\n\n\n

    Consider these issues before working with an angel investor.<\/span><\/p>\n\n\n\n

    When to seek angel investment<\/strong><\/h2>\n\n\n\n