Introduction

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Table of Contents

Introduction

Introduction. 2

Discussion. 2

Conclusion. 4

Reference list 5

Angel investor is a person or company which provides capital to start up a business. Those are exchanged for convertible debt or equality of ownership. The angel investor is the supporter to start a business or make support when the organisation needs to. Angel investor work focuses on financing small businesses for their profit gain. These investors are wealthy private investors and they invest funds to gain more in a small period. Angel investors played a significant role in small business running. These investors invest money with a high rate of interest with a small-time slot and back they claim more as their profit. Those investors are very effective in the business culture and market area. These investors influence their investing company to gain more profit in the market structure. These company investors also mentor those companies to enhance their business structure and maintain their management. These investors are typically individual investors who play a huge role in a startup company. These investors guide a start-up company to become more powerful in the market. These investors also reserved an amount to establish a business in their startup phase. These investors are more common in the business processing part. Proper business handling needs more amount to expand the journey. This time angel investors play their role and help the company.

Discussion

Angel investors are individuals or an organisation which play a typical role in the market structure. These organisations invest their money to claim more as profit. These investors invest their money in time duration. This organisation or person makes a bond when they use their money; the companies which are in the bonding they have shown profit more. This promise is important because they still need capital to grow in their business and angel investor’s money is on the line. These investors highly motivated these companies to gain more profit and guide, monitoring them to utilize their capital properly. These investors all-time help the companies and suggest to them what a more helpful step is for the company. These investors typically want 10% to 50% profit on their investing funding (Cumming & Zhang, 2019). If a business doesn’t utilize its proper investing capital, that step will be very harmful to the angel investor. They may lose their control in the market area and that may damage their business structure. Therefore angel investors always keep a negotiation with the companies in which they invest their capital.

Figure 1: Angel investment

Source: (Cumming & Zhang, 2019)

These angel investors are very common factors in business equality. These investors find sources with many more networks. These investors use online platforms to find more answers. The online platform helps these investors to identify and get information about the company. The angel investor creates a network to connect various companies. These investors are around 2,79,000 all over the world (Grant, Croteau & Aziz, 2019). Through this network system, these investors are always in touch with the company and if they feel interested in the company, they invest their capital to gain more profit. These investors also follow the professional social network LinkedIn to direct contact with the companies. Those investors also survey the local business group or school to keep in touch with the companies or the owners who want to start a business. These investors want a bigger return on their investment amount.

These investors follow ROI expectations in mind as part of their exit strategy. This is the time when they sell their quality products to make up their initial investment and any profits. These investors expect a higher return or a larger percentage of profit. These investors always notice the company management system and production structure and many more issues to utilize their capital (Dat & Anh, 2020). These investors always keep in touch with the company’s workers and suggest to them what a good step is for the company. These investors help the start-up organisation approximately and guide them to achieve more profit and how they expand their business. These investors also make a plan for the companies to properly utilization the capital. These investors constructed specific information about financial, management, insurance, and many more contents. These investors use some ways to invest their capital in the company (Warnick et al., 2018). Those are such loans, funds, and equity positions. The loan process offers a company to develop their business journey and through this loan, angel investors claim more money as a percentage in their successful stage in a certain period. The fund is also a way where an investor provides funds through a convertible preferred stock option which is very effective. The equity position provides a percentage stake in the invested company. Through this process, investors take their percentage after their successful position (Jarchow & Stolz, 2018). Those all ways help companies very effectively in their difficult position and help to overcome their crisis period. These investors played a significant role in the damaged or weak flashes companies. These companies need more return in the market structure, this time angel investors play a huge role in their recovery operation. Angel investor is the case of a start-up organisation who helps the organisation and kicks them to achieve the next level in the market.

Conclusion

An Angel investor is the capitalist or the cashier of the development of a small business or any kind of business in the market. This investor is a trusted banker or an accountant to develop an organisation. These investors play a huge role to expand a business structure or develop their pattern. These investors provide a one-time investment or an ongoing capital injection to help the business move in its difficult stages. These investors play an active role in the management to provide a new business structure and help the owner to develop their pattern of business. Angel investors are in good standing and good looking to invest in potentially high-growth businesses. Through this kind of investors, an organisation becomes more powerful and active, and strong in the market ground.

Reference list

Cumming, D., & Zhang, M. (2019). Angel investors around the world. Journal of International Business Studies, 50(5), 692-719. Retrieved from: https://repositorio.insper.edu.br/beta/bitstream/11224/2761/3/Disserta%C3%A7%C3%A3o-%20Luisa%20Herck%20Giaquinto.pdf

Dat, D. T., & Anh, N. T. K. (2020). Determinants that Impact the Investment Decision of Angel Investors on Startups. VNU Journal of Science: Economics and Business, 36(4), 2-22. Retrieved from: https://scholar.google.com/scholar?as_ylo=2018&q=angel+investors&hl=en&as_sdt=0,5

Grant, K. A., Croteau, M., & Aziz, O. (2019). The Survival Rate of Startups Funded by Angel Investors. I-INC WHITE PAPER SERIES: MAR, 2019, 50(5), 1-21. Retrieved from: http://www.iincanada.ca/wp-content/uploads/2019/03/survival-rates-startups.pdf

Jarchow, S., & Stolz, B. (2018). Angel investors: Does similarity matter. Frontiers of Entrepreneurship Research, 5(22) 7-12. Retrieved from: https://www.researchgate.net/profile/Svenja-Jarchow/publication/321882236_Angel_Investors_Does_Similarity_Matter/links/5f801412a6fdccfd7b51e45e/Angel-Investors-Does-Similarity-Matter.pdf

Warnick, B. J., Murnieks, C. Y., McMullen, J. S., & Brooks, W. T. (2018). Passion for entrepreneurship or passion for the product? A conjoint analysis of angel and VC decision-making. Journal of Business Venturing, 33(3), 315-332. Retrieved from: https://www.researchgate.net/profile/Jeffery-Mcmullen/publication/322889427_Passion_for_entrepreneurship_or_passion_for_the_product_A_conjoint_analysis_of_angel_and_VC_decision-making/links/5ea841a4458515ca49f2b4af/Passion-for-entrepreneurship-or-passion-for-the-product-A-conjoint-analysis-of-angel-and-VC-decision-making.pdf