In recent instances, aspiring entrepreneurs have seen the benefits of tapping into an angel investor to get the capital they want. His company Sherpalo operates without workers or office. Shriram operates his company single-handedly without any infrastructure or institutional scaffolding. He enjoys being accountable only to himself financially. He has no big workplace with employees buzzing around him, though he admits that it is indeed nice to have rich partners who can provide him and his business a cushion when needed. Conversely, an angel investor, when no follow-on capital is required, is perhaps willing to invest in a restaurant or website that has the potential to generate a whole bunch of 1000’s or a couple of million dollars as long as a clear path has been laid out concerning how they may get a sizable return on their investment.
The disadvantage of the angel investor’s larger tolerance for threat is that additionally they usually have greater expectations. They are in business to earn cash, and as there’s a vital quantity of funds on the road, they’ll wish to witness a payoff, identical to anybody else is. It isn’t unusual for an angel investor to expect a price of return that …Continue reading