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Are Super Angel Investors Right for You?
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In addition to angels and VCs, there has emerged a new type of investor: the super angel. Brings to mind a guy in a cape with lots of money, doesn’t it? According to a Fast Company article by Farhad Manjoo:
Super angels raise funds like venture capitalists but invest early like angels and in sums between the two, on average from $250,000 to $500,000.
So if typical angel funding isn’t quite enough for your startup, and venture capital seems eons away, super angels might be a good in-between option.
What to Expect
In a world where VC money is the holy grail (and equally as hard to find as the holy grail), super angels are providing some surprisingly strong benefits. They tend to want less control of your company than VCs. They don’t usually want to sit on your Board, and they process your money faster than venture capitalists. They act, in fact, more like a startup than a corporation in the sense that they’re more fluid, fast-acting and free to fund.
Super angels invest in more companies than traditional angels. Where a non-super angel might invest in up to 2 companies a year at $50,000-100,000, a super angel might take on 20 startups a year at a higher price. Most super angels have successfully launched their own tech companies, and so feel comfortable with their particular niche. Find one who’s worked in your particular area of tech and you might just hit it off.
Should You Go Super?
Only you know what type of funding you need. While you might be past traditional angel investment, it may take months or even years to get the attention of a VC. Consider trying out a super angel in the meantime. Build the relationship well, and it might be the only funder you need.
Finding the right super angel isn’t too hard if you do your homework. Look for:
Someone you’ve heard of in your industry (in a positive light)
Someone who gets what you’re doing
A super angel who can fund you enough so that you don’t have to seek funding right after
A super angel who’s willing to fund you again in a year or so when you hit skyrocketing growth
Someone who comes recommended |
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