Angel (traditional)

The traditional Angel Investor “flies in to rescue a business”. It may be a business with a solid foundation that lacks the capital to expand. Or it may be a business run with passion and potential but without much “business smarts”.

This type of investor would take a significant position within the business and would then work within the business to either turn it around or help it achieve its potential.

We still see a lot of businesses in this position. It’s mostly businesses that are looking for someone with a strong business background to fill that gap in their current team.

Investment Size: Usually in the hundreds of thousands.

Angel (modern)

This for many people now describes a situation between Seed Investing and Venture Capital Investing, where the business is still in its early stages, perhaps too early for some VC firms, but has an operational track record.

Generally, Angel Investors will be looking for a compelling reason for their investment, that generally centres around increasing growth potential.

Angel Investors in this category will often invest in 10 different ventures and will expect one of those investments to pay off big. So they’re usually looking for investments with a big pay-off.

Like most VC firms they are not looking for heavy involvement in the running of the business.

Investment Size: Usually in the hundreds of thousands.