Anyone with cash looking to invest can be considered an angel investor. However, usually the term is usually used to describe people who invest in multiple private companies.
In these times of health and financial crisis, unless you are in a very comfortable position, if someone is offering you money, take it.
However, if you have multiple options of sources of money and is deciding between potential investors, a few things that more “professional” angels can bring to the table are:
- Signal: if you get an investment from someone who invested in unicorns in the past, customers and other investors may take it as a strong signal that you have something worth looking at.
- Network: investors usually know other investors, and depending on the sector, even potential customers or key hires. Introductions can go a long way in helping your business.
- Strategic & Operational Advice: experienced investors sometimes can give you great advice. Not all of the advice is good, though, so you need to make decisions on your own at the end of the day.
At Fluxo, we are lucky to have an exceptional group of angel investors that help with all the items above. How did we find them? Pitch, pitch, pitch. Never stop talking about your company.