Here’s Why Angel Investing Is Right for Your Startup
So you had a brilliant business idea and now are planning to start your own company. Such an endeavor is possible, but if you want to successfully take your startup from the initial concept to a full-fledged business empire you will require certain things. One of the most important: funding. The reality is that unless you happen to already have a sizeable bank account you will need to access alternative financing. There are options, ranging from personal loans to grants to venture capital, but for many startups the angel investor option is the best way to go. Why? Look at it in terms of these adages.
- “Money doesn’t grow on trees.”
You may have a fantastic idea that could revolutionize the financial technology industry, but if you don’t have the financing to back up your concept the business will never make it past conception—and you can’t pluck that money from nowhere. Angel investors can provide you with the funding you need to launch and grow your business. (According to Forbes, the typical angel investment ranges from $25, 000 to $100, 000.) As this money is not a loan, you are not saddled with added costs and stress that comes with a repayment plan. You can then direct your focus on your quest to use your company to improve the financing industry.
Symend, for example, is using financing from angel investors to recreate the debt collection process. Its software system aims to revolutionize the current system, making it easier for creditors and debtors to work together to settle debts. As delinquent debt rates are continuing to rise, a business providing a solution to the issues leading to delinquent payments has a great chance of making a positive impact and seeing great returns. And angel investing helped make the vision a reality.
- “It’s not what you know but who you know.”
Business success does not come easy and your journey will be even harder if you are blindly navigating the marketplace. An angel investor can not only be an needed connection, he/she can link you to other important people in the industry. The connections made through angel investing are one of the elements that will be vital when it comes to growing your business and making sure it thrives in the marketplace.
As well, your angel investor can guide you through the business world, offering you mentorship that will massively benefit your startup. You won’t get that from your typical business loan.
- “If you snooze you lose.”
The business and technology fields move quickly and if your startup is stalled as you search for funding you run the real risk of missing your window of opportunity. With angel investors, the due diligence process moves much faster, getting your startup up and running quicker than other financing options would. This is a vital factor to ensure your company gets the attention it needs at the right time and you don’t waste time, money and energy as you wait for the paperwork to be ready.
Running a business empire brings a lot of stress. Don’t increase your problems by choosing the wrong financing option. Angel investing is a smart option for FinTech startups. The right angel investor will care about your company and its impact in the business (and real) world. Once you link up with said investor, you can focus on building and improving your company, feeling secure in the partnership and knowing that your company financing is solid.