A lot of entrepreneurs looking to establish a startup get confused on the best source of funding to seek for their business. In fact, there are many ideal options to choose from, and it can be an overwhelming process at times. Having said that, jotting down the advantages and disadvantages of each source can assist you to choose the ideal one for you.
A few days back, we have published an article that clears out the confusion between Accelerators and Incubators. In this regard, we have jotted down both the advantages and disadvantages of sourcing fund from Angel investors.
Who are Angel investors?
For the starters, Angel investors are wealthy individuals or groups of individuals who invest their own money in a startup or early-stage small businesses. The Angel investors can be professionals such as doctors and lawyers; business associates.
Advantages of seeking fund from Angel Investors
#1 Flexible and risk-taking
When compared with others, Angel investors are usually negotiable, since they invest it from their own pocket. In most of the cases, many angels are successful entrepreneurs who have cashed out and understand the amount of risk involved with establishing a business. This flexibility and risk-taking ability make Angel investors one of the best sources of capital.