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Getting Money For Your Startup: Five Types Of Angel Investors

Getting Money For Your Startup: Five Types Of Angel Investors

It can be hard to get someone to believe in your business idea. But as an aspiring entrepreneur you have no choice but to keep pushing and plugging until you find someone willing to give you the money needed to start your company.

You will no doubt seek many meetings with potential financers. And such meetings ought to be driven by a strategy to get money. Figuring out what motivates individuals to become investors is an essential part of accomplishing this goal.

Inc. magazine is carrying an article that describes and explains the five types of angel investors. Here is one of the types of investor listed by the author:

The Relationship Investor

The Relationship Investor is a co-worker from a previous company or a business friend that you have known for a while. This investor may or may not understand what your new company is doing, but has a track record working with?you. They want to be supportive on the one hand, but are also looking for a return. The investment from a Relationship Investor is likely not trivial, but you won’t lose them as a friend if things go badly. In my experience these are good Angels to have. Again, as long as everyone has his or her eyes open at the beginning. The Relationship Investor can also be wildly supportive in terms of finding employees and other resources.

The Family Investor, The Idea Investor, The Once Removed Investor, and The ?Archangel? Investor are also described in the article. However, I found The Relationship Investor to be of most interest.

If you have spent any significant amount of time working as an employee?and most entrepreneurs have?then you have probably formed a number of professional relationships that are still in existence. These are people with whom you get on exceptionally well. Your friendship may include a willingness to exchange ideas and even dreams for the future.?If your relationship is based on honesty and frankness, then you should not hesitate to solicit their help in raising the money you need to start your business.

Looking at the different motives people have for investing is a sound means of determining who is likely to invest in your idea. It is always good to start with those closest to you.

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About Christopher Reid Chris was born in Washington, D.C. and lives in Britain. He works as a blogger, essayist, and novelist. His first book, Tea with Maureen, has just been published.

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