Benefits of Angel Investing
 Since the mid 1990s, more than 200 angel groups have been formed, providing a number of benefits for both the entrepreneur and the angel investor. These groups bring a diverse set of talents and skills that can be leveraged to the benefit of both the entrepreneur and the angel investor.
As part of a team, an angel investor has better deal flow, can perform better due diligence, can control the investment process, can negotiate better terms, and has access to additional capital. The knowledge and experience of a team helps the angel gain a more complete understanding of the investment. Another major benefit is the learning experience. As a result of participating, the angel investor learns a great deal about the market, the product, and the underlying technology of a given investment. At the same time, members strengthen and expand their network of contacts and gain the satisfaction of supporting regional economic development and mentoring start-up companies.
As for the entrepreneur, significant benefits include being able to deal with one group rather than many individuals and to gain enhanced knowledge from the financial sophistication of the angel group and from the special expertise and skills that individual members can contribute to the company.
As Vernon Yates, Chairman of the Board of Governors of the Tech Coast Angels puts it, angel investing has become a team sport. To be effective, groups divide the work among the members so that any one person doesn’t have an undue workload.
Some BRAIN investments may be eligible for North Carolina tax credits. For more information, visit the web site of the Department of the Secretary of State of the State of North Carolina.
|
