StemenCapital.com

CAPITAL SOURCES

Commercial Banks

Community Loans/Grants

Credit Unions/Cooperatives

Factoring Companies

Federal Loans/Grants

Finance Companies

Internet Sources

Leasing Companies

Venture Capital

Private Lenders/Investors

State Loans/Grants

Government & Community Assistance to Obtain Money

Name

Contact Office

Telephone

Primary Web Site

Angel Capital Educational Foundation

www.angelcapitaleducation.org/

Angel Capital Association

www.angelcapitalassociation.org/

National Association of Seed and Venture Funds

www.nasvf.org/

World Business Angels Association

www.wbaa.biz/

AngelSoft

http://angelsoft.net/

AngelList

http://angel.co/

Financial Resources For Northwest & West Central Ohio Entrepreneurs

About
Contact

Angel Investors

Like venture capital organizations, angel investors invest in promising start-up and emerging companies. In general, angels invest in start-up and early-stage businesses, while venture capitalists invest in later-stage more mature businesses. Angel investors invest their own funds directly in a business, while venture capitalists invest funds from other sources (e.g. pension funds, insurance companies, foundations). Angel investors are typcially willing to invest much smaller amounts ($5,000 to hundreds of thousands) than venture capitalists (often $2 million and up). Typically, their investment is in exchange for an equity interest in the business, but they may also loan money or loan money with an option to convert the loan to equity. Beyond supplying the company with money, they may also provide assistance with business planning, operations management, and raising capital. Although like venture capitalists they often have a primary motive of making a high return on their investment, many also have a desire to help in the economic development of communities in which they have a vested interest. They typically do not want to be a long-term investor in the business, thus they expect to get their investment back plus a profit when the business is sold or strong enough to repay them. Angel capital is attractive for businesses that are too small or too new to secure a bank loan or traditional venture capital.

Angel investors can be an individual, or group of people who pool their funds. Many groups meet regularly to review business proposals, and then ask businesses with the most appeal to make a presentation to the group. Some groups charge application fees and presentation fees.

Businesses wishing to entice angel investors usually require all of the following characteristics:

• A strong management team with experience and proven skills.

• Unique product or service with a clear competitive advantage and high barriers to entry for competitors.

• A clear picture of the market opportunity and realistic plan for goal achievement.

• An exit strategy for the investor that is reachable within 5 to 7 years.

• Realistic potential for a strong return on investment.

Listed below are sources of information about angel investors, and lists of those willing to evaluate opportunities. There are many local community angel investors who are not members of angel investor organizations and advertise by word-of-mouth.

MONEY SOURCES

Angel Investors

Commercial Banks

Community Loans

Credit Cards

Credit Unions/Cooperatives

Factoring Companies

Federal Loans/Grants

Finance Companies

Internet Capital Sources

Leasing Companies

Private Lenders/Investors

Trade Credit

Venture Capital

State Loans/Grants

Useful Information

Interest Rate Links

Business Management Links

Glossary of Important Financial Terms You Should Understand

How To Prepare A Business Plan to Obtain Money

Home
About Contact Home