Doron F. Eghbali Business Planning Law Blog on Lawyers.com

Who Are Super Angels?

Thursday, May 6, 2010 by Doron F. Eghbali

A new breed of angel investors has emerged recently with combined characteristics of angels investors, venture capitalists and experienced entrepreneurs. These are Super Angels. Let us further understand who Super Angels are.

SOME CHARACTERISTICS OF SUPER ANGELS

Earlier Investment In Life of a Start Up: Super Angels, typically, invest earlier in a start up than Venture Capitalists.Venture Capitalists often invest in companies with at least three years of proven success.
Earlier Investment Decisions: Super Angels make investment decisions earlier than Venture Capitalists as they do not need to get consent of their partners. Super Angels like Angel Investors are typically affluent individuals who often understand the industry they invest in.
Broader Investment Field: Super Angels invest in a large array of companies than venture capitalists. Venture capitalists tend to invest more in information technology, health care and renewable energy, industries with proven track record of relatively higher returns and lesser risk.
Lesser Investment Dollars Per Start Up: Unlike venture capitalists, Super Angels invest relatively small amounts of money in a start up from $25,000 to $250,000.
Broader Involvement In Management Decisions: Super Angels are not passive investors. They take on a rather hands-on approach in their investments.
Broader Expertise Offered to Start Ups: Given Super Angels are typically successful technology entrepreneurs or former tech executives, they often offer their expertise to start ups.
Broader Collaboration Between Venture Capitalists and Super Angels: Given the broad expertise and proven business acumen of Super Angels, Venture Capitalists might feel relieved to invest in a start up knowing their investment is partially managed by such experienced stakeholders.

DISCLAIMER
Law Advocate Group, LLP or its Partner, Doron Eghbali, has no affiliations or receive no monetary or non-monetary rewards or contributions from services discussed here. This posting is for educational purposes only.

___________________

DORON EGHBALI is a Partner at the Beverly Hills Offices of Law Advocate Group, LLP. He Primarily Practices Business, Real Estate and Entertainment Law. Doron Can Be Reached at: 310-651-3065. For More Information, Please, Visit: HERE.

Posted at 14:42 PM

Topic: Business Planning