There is a lot of popular advice about how to structure your business plan to attract angel investors. But let’s examine business plan features that repel angels from investing.
VoicesHeard Media, based in Nashville, received $1,500,000 of first round funding from angel investors and is raising a second round of $3,000,000 to $5,000,000. The company founder and his acquaintances provided initial capital for the company. This was followed by the $1,500,000 of angel investment.
The rising number of angel investors has created an atmosphere conducive to raising startup funds for all business types, but some analysts warn that shying away from the big venture capital firms has entrepreneurs thinking small.
Getting outside investment is an important step for many companies as they try to grow. But as Business Insider’s Roger Ehrenberg notes, not every investor – regardless of the size of their wallet – is a good fit for every company.
While most early-stage entrepreneurs won’t be able to get funding from venture capitalists, angel investors can give them the capital to create a corporation and make their business plan a reality, WBTV reports.