Do angel investors pay salary?

You might prefer an angel investor who is a business partner, helps your company grow and contributes to its success, rather than one who is just looking for a return on their investment. Some angel investors may demand a significant ownership position and you may end up selling more of the company than you had planned. Angel investors often form “angel groups”, in which they evaluate companies and invest together, pooling resources to make larger investments. The Angel Resource Institute, a non-profit organization that provides education and information on best practices in the field of angel investing.

Angel investors are generally interested in high-growth, high-potential start-ups that can earn several times their original investment. Angel investors can invest even if a company cannot obtain funding from a bank or financial institution. Even if you think your company offers exceptional growth potential or a game-changing product, angel investors may still reject your proposal. An angel investor usually provides capital in exchange for shares (company shares) or convertible debt, which is a loan that can be converted into equity at a later date.