Workshop:

A diverse group of angels can bring various skills, experiences, and industry knowledge, which enhances the support and guidance available to the startup. This diversity increases the chances of identifying and leveraging opportunities across different sectors.

For more insights and resources on angel investing, join our webinars and workshops at COREangels. Explore our upcoming events at COREangels Events.

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Higher returns are often associated with:

• Angels having expertise in the startup’s industry.
• Angels with entrepreneurial experience.
• Active and ongoing participation in the startup’s development.

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One common pitfall is making follow-on investments to avoid losses rather than to support growth. Additionally, excessive involvement by angels in the startup’s operations can lead to lower returns.

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The relationship should be based on mutual respect and clear expectations. Angels should act as mentors and advisors rather than supervisors, and founders should feel comfortable seeking advice and support from their investors.

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Active participation, such as being on the board or having frequent interactions with the startup, is linked to higher returns. Startups with active angel involvement tend to perform better than those with passive investors.

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Due diligence is crucial as it helps investors understand the startup better. Studies indicate that startups that receive at least 20 hours of due diligence have higher returns, as investors can identify potential red flags and establish a stronger relationship with the founders.

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Angel investors provide “smart money,” which includes:

• Strategic advice and mentorship.
• Access to valuable networks and contacts.
• Expertise in specific industries.
• Assistance with market validation and growth strategies.

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Studies show that startups funded by angel investors are:

• 25% more likely to survive after four years.
• 11% more likely to achieve an exit.
• 19% more likely to reach 75 employees.

Angel investors contribute more than just financial support. They offer mentorship, industry expertise, networking opportunities, and strategic guidance, which can significantly impact a startup’s growth and success.