Please read the short case and answer the 3 questions thankyou
While angel investors for online startups are a hot topic today,angel investors have actually been key to economic development formuch longer, and for all types of industries. In fact, withoutangel investors, few companies would make it past the startup stageand to the venture capital investment stage, let alone privateequity or IPO funding. Companies that found early funding throughangel investors include Home Depot, Microsoft, Amazon, and BestBuy.Although individual angel investments are far smaller thanventure capital investments, angel investments overall contributesimilar amounts to the economy as do venture capitalists. And theimportance of startups to the economy can’t be overstated: Startupcompanies are key to job creation. Angel investors do more thanjust provide cash. They are typically business experienced businessprofessionals and entrepreneurs and also mentor a start up, serveas board members or executives help develop relationships withventure capital firms and more.
Today, angel investment has become a trend in the arena ofindividual investing; and angel groups and networks have formed totake a professional approach to startup investment.In an angelnetwork, members work as a team in screening deals, valuatingfirms, and due diligence (research, reporting, firm assessments).However, compared with individual investors, they are typicallymuch slower to act, requiring more time to manage the investmentprocess.
1. What types of people are angel investors, and how are theydifferent from venture capitalists?
2. Explain Angel math and the 10X formula
3. Why is it recommended that a startup exhaust all other formsof investment before turning to angel investors?
