Top Angel Investors to Look For Your Startup

best angel investors
October 13, 2020

Introduction

You may have put the first foundation stone for your business idea by raising funds from people you know like your family or friends, or even from your savings. This can work to build the business idea at the initial level but to push it further, you need to have enough funds to help you move towards better growth.

To keep it simple, your business may hit rock bottom if it is experiencing a cash crunch or capital issues in order to get financial help from the banks you need to have collateral security, which may not be possible during the early years of your entrepreneurship. Moreover, it is not wise enough to get large amounts of debt in the early years of your business!

This is where angel investors come to your rescue. They can help turn your business idea into reality and you will not be obliged to pay back the money!!!

Who is An Angel Investor?

Angel investor is a person who is financially sound and provides capital to startups and small businesses in exchange for ownership equity. Rather than concentrating on the company profits, angel investors are more focused on helping the startups to establish themselves and grow.

What is Their Role?

Angel investors do not come from any specific professional background. Such people are not much interested in making profits; rather they work towards helping startups stand in the market on their own. Such people are quite passionate about building businesses and so play the role of mentorship and assist business through its every phase. The best thing about such angel investors is that they have worked across different top companies and have gained experience over the years.

Benefits of Having an Angel Investor for Your Startup

Angel investors are ready to take risks

A small loan can help you stay afloat for a small period of time, but the kind of challenges that a startup or a small business faces can only be handled by an angel investor. The main reason why such angel investors do well in this area is because they are entrepreneurs and they are already aware of the risks that are involved in the business. Angel investors can help your business as long as it needs against the limited amount of help that the banks can offer you.

Angel investors don’t ask for repayment

You will be expected to repay the loan that you have taken from the bank for your startup or small business. You are supposed to pay back the amount even when your business has failed badly. The angel investors, on the other hand, will offer you the needed capital to keep your business moving and in return, they will have ownership shares in your company. If the business works, it will do good for both parties. If it fails, you don’t have to pay back.

Better chances of success

People behind any startup business do not have enough practical knowledge and experience that it needs in the initial years. Angel investors have years of experience in working behind a number of successful businesses and so for startups, this helps them get the expertise that they need to push the business ahead. Again, it has been seen that the businesses which angel investors backed has managed to be doing well and even experienced substantial growth.

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Top Angel Investors in The USA for Your Startup Business

If you are planning to have a startup business, it is important you have a clear idea of the ways in which you can secure your capital. Opting for angel investors can help you do fine and for that, you need to have an idea about the people you can approach.

So here we are with the list of angel investors who have done well in the arena and are quite popular among the mass.

Paul Buchheit

Paul Buchheit

He is one of the most active investors in the market and is a partner at Y Combinator. In the beginning years, he started working for Google and Intel and has also worked on products like Friendfeed and Adsense. He has a great portfolio and has worked with more than 40 companies.

Jeff Bezos

Jeff Bezos

Jeff Bezos is one of the biggest investors in the US and is the man behind Amazon. During the Tech Angels of the year released in 2010 by Businessweek, Jeff Bezos was found ranking on the 7th position. As per the Harvard Business Review, after the Apple’s CEO Steve Jobs, Bezos is considered as the second best CEO in the world. He has a total worth of around US$82 billion and is one of the richest man on the earth. Being an angel investor, Bezos has invested in a number of companies like Uber, Airbnb, Qliance, Aviary, Twitter, etc.

Paul Graham

Paul Graham

Paul Graham is another co-founder and one of the partners at Y Combinator. He was ranked at 11th position during the Businessweek’s list of top Angels in Tech. He was listed in the top 50 Early-Stage investors in Silicon Valley.

Jeff Clavier

Jeff Clavier

Jeff Clavier is the managing partner and founder of the venture named SoftTech VC. Up to this day, his company has invested in more than 150 startups. As per the Businessweek’s list of top angels in Tech in the 2010, he was ranked on the 19th position. He has invested in a number of successful startups like Wildfire, Kongregate, Mint, Milo and Class Dojo.

David Lee

David Lee

He was named as one of the top 50 Early-Stage investors in Silicon Valley. He is an American angel investor and has been working as the managing director at SV Angel for many years. He has invested in companies like Foursquare, Twitter, Flipboard, Airbnb, Dropbox, etc.

Fabrice Grinda

Fabrice Grinda

Fabric Grinda is one of the well-known angel investors who has invested in a number of business ideas across the US, Asia and Europe. Grinda has also been the CEO and founder of Zingy and the co-founder and CEO of Auckland S.A. Fabrice Grinda has been the co-founder of OLX and has invested in more than 100 active projects and this includes Brightroll, Peopleprehour, Viajanet, and others.

Alexis Ohanian

Alexis Ohanian

Alexis Ohanian is an American Internet entrepreneur as well as an investor. He was even the partner at Y Combinator, has been the executive chairman and co-founder of Reddit and was also the man behind co-founding Initialized Capital. As per Forbes, his total worth is around $70M.

Scott Banister

Scott Banister

Scott Banister is another angel investor and an American entrepreneur. He was a board member and an early advisor at PayPal and was the co-founder of IronPort. Apart from that, Scott Banister has turned as an investor for a number of companies like SponsorNet New Media, Inc., eVoice, Zivity, and Slide. He had made investments in private equity-like Topsy Labs, Teleport, Tagged.com, Causes.com, iLike, and TekTrak.

Naval Ravikant

Naval Ravikant

Naval ravikant is the co-founder, former CEO, and chairman of AngelList. He is an Indian American investor and entrepreneur. Through years, he has invested in a number of companies which includes Yammer, Twitter, Uber, Clearview AI, FourSquare, and SnapLogic.

Things Angel Investors are Interested in

Experienced management teams

For any business to run smoothly excellent management is crucial. Angel investors look at the management team of a startup before they plan to make an investment. Some exceptional qualities that they look in the management team are professionalism, proper strategy and approach, integrity, and determination.

Path for ROI through business

Helping a business get hold and sustain is what angel investors are interested in and so they will always look for opportunities that will benefit the business and them. So they would definitely like to know what kind of returns you are expecting from the business. Not all returns are financially bound! Angel investors even want to know the problem that your product or service will be resolving for the world.

Better understanding of products or services

Everybody wants to know where and on what they are investing money. Things are not much different when it comes to angel investors. As they will be putting money in your business idea, it is important that you build their trust first and gain their support eventually. The better they will understand your business offerings, the more they will be interested in investing.

Final thoughts

If you have a good startup idea that you think can work then the best way to get capital is through angel investors. Apart from securing money, they even help you with better planning and strategies through their experience and expertise. Everything comes at a price and in the case of such ‘angels’, they will have a share of ownership in your startup. Moreover, having an MVP or a prototype built for your project will help you reach your investors easily. If you wish to get done with MVP or prototype development, we can help you with the task – Contact us!

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