Angel investors are industry experts or veterans that invest in startups that they care about. In addition to providing funds, they often work together with founders to provide mentoring.
This is what separates angels from traditional venture capitalists. Angel investors are usually more passionate about the specific industry and often make the startup journey less lonely and more bearable.
Many angel investors also work in teams, so you will often find them as part of one network or the other. This usually depends on the industry they cater to or their beliefs.
Angel Investor vs Venture Capital vs Accelerator vs Incubator
If you have a hard time distinguishing between these different terms, here is a quick rundown to get you up to speed.
- Angel Investor – Usually a high net-worth individual and invests from personal funds. Net worth should be above $1 million or annual income above $200,000. Angel investors usually have some experience in the said field and will often function as mentors too.
- Venture Capital – This is either an individual or a firm with access to pooled funds from a group of investors. Their job is to make profits on their investor’s funds. But while they do not stick around to mentor new founders, they often demand some form of control as well. They can demand equity stakes up to 50% or higher.
- Accelerator – A startup accelerator is a time-limited program, designed to train and equip founders with the necessary knowledge to successfully pitch their ideas and secure funding for their startups. They also demand an equity stake, often ranging from 7% to 10%.
- Incubator – Similar to accelerators, incubators also offer startups a place to work and develop their idea, business strategy, or product. But while accelerators are often limited to 3 – 6 months, incubator programs can range from 1 – 5 years.
The following is a list of the top angel investor platforms on the net. Joining them and networking with potential investors will make your funding journey much easier.
Top angel investor websites
|Angel Investment Network||UK, global||1.5 million+||angelinvestmentnetwork.co.uk|
|Angel Capital Association||U.S.||30,000+||angelcapitalassociation.org|
|Golden Seeds||U.S. Women||N/A||goldenseeds.com|
AngelList is a huge platform for startups. It counts over 5 million members, 100,000+ startups, jobs, and investors all coming together to make things work. Raising money from angel investors is free of charge on this website.
AngelList has been responsible for over 35% of top-tier venture capital deals in the U.S., with over $1 billion flowing through the site.
Startups have the opportunity of securing both funding and finding talent for hire. Jobs include everything from software engineering to data science, product managers, designers, and so on.
There are over 2 million candidates and this includes more than 700,000 developers looking to join startups. Plus, there are 100,000+ startups of all sizes on the platform.
Further features include Product Hunt which lets you see what is new out there. Syndicates to invest alongside prominent angel investors, and free tools for startups.
Members: 5 million+
The Gust platform includes everything a platform needs to succeed. From the initial company set up to funding rounds, this network makes it easier to find the help you need.
You will get over 800,000 startups and over 80,000 investment professionals on Gust. This makes it a really large network as well, where many things can happen.
There is Gust Launch, a company as a service offering. It helps you to incorporate and run your company the way investors expect it to be. This includes non-disclosure agreements, board of directors set up, stockholder agreement, and the adoption of bylaws. All these help in increasing your funding chances.
Then there is Accelerate, a service that helps you to launch your offering. It covers all the legal hurdles, provides a community to tap into, as well as over $100,000 in savings from partner firms such as AWS, Hubspot, and legal counsel.
Finally, Gust Raise makes it easy to analyze your company, receive audit-proof valuations, save on legal fees, and find the right investors to fund your new venture.
3. Angel Investment Network
The Angel Investment Network is a global network of investors and entrepreneurs seeking funding. Though it started in the UK, it currently has 30 branches and operations in 80 countries.
This network is also large, with over 270,000 investors and 1.3 million founders seeking funding. These users are spread around the world and from different countries speaking different languages.
You can either register on the website directly or search for investors in your area of expertise. You can also select a specific country or region that you would like to browse.
Accounts on this network start from Novice, which is free for a 30-day listing to Pro for a £149 90-day listing, Global Pro for a £249 worldwide listing, and Executive for a 120-day £2,499 listing.
Area: the UK, global
Members: 271K investors, 1.3 million entrepreneurs
The Angel Capital Association is a collective of angel investors and their networks, spanning many industries.
Though the association focuses on the USA, it includes networks from Canada, South America, and the Middle East.
This brings its total of accredited angel investors to over 14,000, with over 20,000 companies in the member’s investment portfolios.
You can use the website to search for angels, learn more about angel investing, or keep up with news and events. And for investors, it offers a wealth of knowledge and insights to help make better investments and boost profits.
Funded.com offers a simple pitching and funding process. The site has been in operation for 10 years and enjoys an A+ rating from the Better Business Bureau.
Funded uses a Lender Match feature to quickly and easily connect pitches to the right investors. Signing up for the Basic plan also grants you a free business plan executive summary to help your pitch. But you can additionally get a fully comprehensive business plan written by Funded for a fee.
The basic plan comes with a free-trial period after which the service costs $99 per month.
6. Angel Forum
Angel Forum is a Canadian-based and focused startup network. It is a non-profit organization, which works to connect entrepreneurs with angel investors.
This network is active around British Columbia, Canada. But it also works with angel investors from other areas, including the United States.
Startups can register for free, while angels need to pay an annual $300 forum-membership fee. At pitch events, each founder is allowed 10 minutes to pitch and another 10 for Q&A.
However, the network has a selection criteria for choosing which startups can make these presentations at an event.
Area: Canada, U.S.
The Envestors platform is a private Uk-centric network of investors and founders. It helps startups to present their ideas and possibly raise capital for their ventures.
Envestors is compliant with the FCA, the UK’s regulating body. It has a network of over 4,000 UK-focused angel investors and has channeled over £120 million into 200+ promising startups over the years.
This network is also friendly to global founders that may have a promising high-growth venture for the UK market. And it offers relevant services in that regard. The Envestors network currently counts 26 exits.
Area: United Kingdom
Members: 4,000+ investors
8. Golden Seeds
Golden Seeds caters to an often-overlooked issue in the startup funding industry. About 10% of venture capital is managed by women, while about 13% of venture dollars go to startups with a female on the team. All-female founders, on the other hand, receive less than 3%.
The Golden Seeds investment criteria page lays out its need for women founders or companies which have at least one woman in a C-suite level role.
Else, it is business as usual. The network has 285 angels and has invested over $140 million in 200+ companies led by women.
Area: U.S., women
Members: 280+ angels
Reaching the end of this list of the web’s top angel investor websites, you can see that there are lots of innovations getting funded out there.
You should also note that the presentation is often as important as the idea itself. So, it is necessary that you learn how to properly sell your idea.