When Looking for Investors, Tread Carefully Around Angels

There are plenty of studies floating around the Internet that suggest that banks are hesitant to loan money to entrepreneurs. That is unless they don’t really need it. No surprise there.

Angel investor

One of the studies, conducted by Florida Atlantic University College of Business, noted “bank lending to small businesses … is still depressed several years after the end of the U.S. financial crisis that started in 2008.”

So what should an entrepreneur do? Definitely explore alternative sources of debt financing. More on that later.

What should an entrepreneur not do? Sell a piece of their company to an angel investor to finance their business.…

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Angels vs. Venture Capital: Disposing of the Myths

Many people often confuse or interchange angel investors, venture capitalists, and private equity deals, which are among the major sources of start-up income. While there can be a few similarities in the right light, when you compare them side-by-side, they’re apples and oranges. People often believe that business angels, venture capital and private equity are all one and the same.

Angel investor

A major similarity is that both angel investors and venture capitalists are making their investments into private companies for the return of private equity in those companies. Private equity is simply shares or stakes (sometimes securities) in any company which isn’t registered with the stock market.…

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