Angel Entertainment Investors
Since the tech boom we’ve heard the term “Angel Investor” thrown around a lot. One of the biggest challenges any project or startup is raising funds.
Loans are too risky, because if your project falls down, you are left in debt. Angel investors, on the other hand, have many advantages. The math homework is to weigh up the positives and negatives. How they affect your project’s long-term plans… before you sign the contract.
What Is An Angel Investor?
An angel investor is usually an individual who is interested in helping small companies expand. Angel investors are accredited, which means somebody has already checked that they have the money.
Angel Investors are not doing it for love like crowd funders do. Angel entertainment investors receive a percentage, %, of ownership in your company. When your company makes a profit, the angel investor is able to sell their shares at a profit.
Angel investors can work independently or be part of a larger investment syndicate. A syndicate is a group of people who pool money to invest. Angel investments can range from $25,000 to $125,000. Some angel investors have larger funds to work with investments.
Angel Investor Positives
The money from Angel funding is not a loan. Investors are risk takers and invest long term to help your company increase in value and profit over time.
The larger majority of startups fall down, because of lack of business expertise and good money management. Often Angel investors are experienced business owners and experienced in working with startups. Angels will provide you with invaluable mentorship with their experience and expertise.
Angel investors play the long game and understand the risks. They are banking on you the founder to make it happen. When an angel investor believes in your project, they put their money on the line. They invest to support your startup's long term growth and success. But, more than anything, they are investing in you the founder. They are betting big on you having your sh.t together.
Angel Investor Negatives
Your job is to succeed. Angel investors invest to see their investment pay off. You are expected to give them a return. Art for art’s sake that’s unsellable is not going to work. Angel investors are hands on. You give them a percentage of the business's future profits and a certain amount of say in your business. You give them partial control in making decisions that affect the bottom line. If you disagree with your angel investor's role in business operations, it could be a problem.
Does an entertainment angel investor sound like the right path for you and your project?
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