Another way companies turn to equity funding is via an Angel investors network. The Angel business model is similar to the equity investor model but there are numerous differences. First and foremost is that the angel investor does not need a controlling stake in the company. Angel investment is considered to be a charitable contribution. Companies seeking angel investor contacts can be confident that their projects will be successfully undertaken and that the angel will give an upfront one-time cash payment.
Companies too can find business partners via a network of angel investors. Such network groups usually consist of the largest angel investors and networks of private investment companies which partner with entrepreneurs in return for investment into the company. The companies who benefit from these partnerships usually have a proven track record of success and innovation. When companies utilize a network of investors, they are able to use capital without needing to sacrifice equity.
The information in the Angel Investor database does not reflect a one-time Insight. Instead, it provides businesses with a listing of over one hundred investment communities. This listings come from individually selectedAngel investor communities who participate in the database. Companies can then search for angel investors in this database at any time.
The database covers groups of angel investors ranging from those with a single investment site to multi-million dollar funds. The types of businesses on the ' Parkway of Equity' are entrepreneurs likefoundations, venture capital firms, early stage businesses, and public companies likehedging firms.
The multiple categories of angel investment communities can be found using the database in multiple ways. Companies can either select individual angel communities or the ones among existing groups of investors. Some companies may only realize a single listing in the top 10 based on achievements and public market feedback.
If a company is searching for angel investors to promote their companies, they can browse through the networks to determine whether the stimulus of angel investors shows in the public market. The database can display the last three or twelve month's worth of history of VC deals from the top networks.
Companies of all sizes can find a host of private equity investors; however, large companies will have access to more limited networks. A company can find multiple financers and show them a deal using the public market information from the Angel Investor Network. The number of deals each week can vary depending on how the network chooses and when funds are distributed.
The requirements for investing in the Angel Investor Network are simple. Signing a non-disclosure agreement requires the investor to fund a minimum of 10 deals. This requirement means that any early stage venture capital firm or entrepreneur cannot participate. Additionally, a deal must be created at least two months prior to a formal announcement.
If a deal is accepted by the network and is announced on a Tuesday, the deal money will be distributed on Thursday. Even though the Angel Investor Network has few requirements it does offer investors plenty of options of who to choose from.
The largest amount of money raised by Angel Investors Network is derived from private equity deals. The hours of operation of the angel investor networks is limited and deal Payne NM's can disclose during the smile period.
The number of deals is directly related to the amount of television and print publicity that the networks provide on their deals. The more coverage, the more capital that is available to fund the deal.