As an entrepreneur, you must be aware of the rigorous conditions and stipulations that venture capitalists put forward when they deal with the stakeholders and board members of the organization. Therefore, for a startup, an angel investor is a better choice. It is no surprise that the average annual investment by angel investors reached £ 850 million in the United Kingdom.
If you are looking to approach an angel investor but want to know the value that he can bring to your business, then here are some non-monetary benefits of an Angel Investor:
An angel investor does not view the investment as a financial loan. Along with the investment, he is also bringing in business strategy and technical expertise as an investment in the startup.
A financial institution expects the loan to be repaid regardless of the success of your venture. However, the perception of the angel investor is different. He is ready to plow in his skills to ensure the business achieves the stipulated growth. This is certainly a win-win situation for both the startup entrepreneur and the angel investor.
Sometimes, your huge bank loans can prevent you from taking risks. However, the angel investor’s rich expertise and exposure from related businesses will give you the much-needed confidence to evaluate the risks. The angel investor can share constructive feedback on your innovative ideas and will be able to validate the success of these product innovations.
An angel investor is in a better position to introduce advanced technological developments like the AI, Blockchain, IoT etc. Under his guidance and expertise, these advanced tools are capable of taking the startup to the next level of growth.
Most of the angel investors are entrepreneurs themselves and therefore have a vision. It is an advantage since he is conversant with the nitty-gritty of business tactics. His business acumen would benefit the startup from coming out of some tricky situations. He is in a position to implement his management skills in improving the business venture.
You should remember that an angel investor is not loaner to the startup. While he lets go of certain things and trusts your judgment, he will also be your major pillar of strength when things are not so fine.
His vast industry experience will help you craft a better marketing & sales strategy from time to time. If your angel investor is technologically sound, he could also act as a consultant to the product team and suggest improvements.
The decision process becomes quicker since the angel investor is experienced in dealing with important business situations. The long process of approval from the Board members also becomes simple since he is also on the Board of the startup.
The financial institutions or the venture capitalist looks at the loan only from a financial point of view. However, the angel investor invests both his money, time and effort to help the startup grow and achieve results. He looks at the bigger cause that the business has a potential to address and drives the team towards success.
Thus, any startup who has an angel investor should utilize him as a valuable resource. It is not just about the money he invests, it is also about his expertise and business accumen that startups should capitalize on.