Angel investors typically invest in seed or early stage startups that are seeking between $150,000 to $1M. Often, a group of six to twenty angels will pool their funds to make such an investment. The average check written by angels is ~$30,000. They are typically accredited investors that are investing with the intention of engaging with the management team in some capacity (advising, coaching, consulting and possibly even becoming a member of the board).
Angel’s seek startups with a premoney evaluation of $0.5M to $3M and typically seek 20%-40% ownership. Angel’s are looking for returns of 10X+ in less than 5 years. Angels are typically uninterested in anything less than a 10X potential return as the investment will not balance the deals that go south in their portfolios. Along the same lines, Angels look for exits of $30M-$50M. Angels typically undergo extensive due diligence prior to closing a deal.
