Adapted from
Where to Go When The Bank Says No: Alternatives for
Financing Your Business
by Evanson, D.R.
Corporate angels
These private investors use
their severance or
early-retirement pay from former
senior management positions
at large corporations to make
entrepreneurial investments.
Typically, they seek a new
senior management job in the
investment, want to be involved
in one investment at a time.
The most active of the angel
investors, they invest the
largest amounts, often over $1M.
They tend to have been
successful entrepreneurs
themselves, now looking for ways
to diversify their portfolio or
expand their current business,
rather than looking for a new
job.
Less professional than their
entrepreneurial counterparts,
these angels invest in firms
more as a hobby now that they
are in their later years. They
tend to invest smaller amounts
(from $20,000 to a few hundred
thousand dollars) across a
number of companies, but they do
not actively participate in
their investments.
These business angels prefer
great control over their
investments, often micromanaging
them from a seat on the company
board rather than through active
participation.
They may invest in as many as
four companies at a time, adding
value as well as money to each...
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As
investors from backgrounds in
professional careers (doctors,
lawyers, accountants), these
angels prefer to invest in firms
that offer a product or service
with which they have experience,
frequently offering their sector
expertise to the investee firm,
although they're usually not too
actively involved.
Generally investing in a number
of firms simultaneously, they
tend to invest from $30,000 to
$300,000 each and prefer to
co-invest with their peers (syndicates
of business angels).
