The fairly new term angel investor may not be one that every startup is familiar with but it should be. Angel investors invest early on in a startup’s beginning and gain an equity ownership interest. Angel investors should not be confused with venture capitalists as venture capitalists put forward larger amounts of money usually no less than $1 million and consist of a larger business entity, Angel investors are more likely to speak personally with the entrepreneur they invest in and see them through the beginning stages of the startup process. While venture capitalists can get you through the end process of production and sales; angel investors are necessary to get the ball rolling and tend to stay invested throughout the entire cycle. The following are important to understanding what angel investments can do for your startup.

• Angel investors are likely to invest amounts from $25,000-$100,000. The amount can be more but the money invested is more than likely personal money not money from a business investment group.

• Your startup will need multiple angel investors to see you through the beginning stages of marketing, research, and production.

• Angel investors are interested in your product and in you as an entrepreneur. They want to know and understand your values and philosophies before deciding to invest. They are investing in more than just your innovation.

• Your business model and long-term planning/goals also matter to angel investors. These investors want to be involved for the long-haul and need to know your goal extends past the first round of production and sales.

• Angel investors want to hear more than a pitch or idea they need to see a working prototype of the new technology or innovation before investing. Going on your pitch of what it will be like or what it can do is just not enough.

While gathering enough investments may seem time consuming it is well worth your time to take meetings with potential angel investors, answer all questions, and be prepared with investment numbers and projections. These investors could be the catapult to success your startup needs.