 |
Best Practices for Angel |
Sign up for the Email Newsletter |
Subscribe to the RSS Feed |
 |
Early-Stage and Angel Investment
Early stage and Angel investing is different.
In the first rounds, the total capital invested might only be a few hundred thousand dollars; the legal fees should only be a few thousand dollars. This necessitates clean, simple documentation that is much shorter than standard venture capital investment agreements.
In these early stages of a young company's development, corporate structures and boards are often not well developed. Successful angel investors see this more as an opportunity than a challenge. At the time angels usually invest, it is still easy to improve the structure and board. That is one of the ways angels and early directors often contribute their experience along with their capital.
While it is not possible to be precise, many believe the value provided by angel investors is roughly half cash and half mentoring.
