Angel Investing: Become an Angel Investor to Someone
Updated: 2021-06-07T02:45:13Z

 


Starting a business endeavor requires not just confidence in the product you are trying to sell but also some form of capital. Either you can solo the expense or ask the help of others through investors through startups or Angel Investors.

 

Angel Investing: Become an Angel Investor to Someone
"man-in-blue-button-up-shirt" by RODNAE Productions is licensed under CC0

 

The traditional way of doing this is to pitch your product to potential investors and if your product is a good buy, then they will fund your startup. Depending on how your business is set up, these investors can take a seat to your company and become members of your board. This setup is most appropriate if you have the next big thing idea like Microsoft or Facebook.

 

But as you are waiting for your next revolutionary idea to be discovered. You may want your other business ideas to be funded first. Luckily, the Internet era allows you to do just this through Angel Investing.

 

 

What Is Angel Investing?

 

In its simplest form, this is similar to Mutual Funds. A pool of money collected (Crowdfunded) from Angel Investors is given to startup businesses.

 

 

How to Make Money as an Angel Investor

 

Investors are provided with a Return On Investment through interest rates. And when the lock-in period matures, the capital invested is returned to the Angel Investor.

 

 

Advantages of Angel Investing Over Mutual Funds

 

  • Lock-in periods range from 1 month to 1 year. Meaning, the waiting time is much shorter and flexible.
  • You have control over what businesses you are going to fund unlike in Mutual Funds.
  • Depending on the business to be funded, the entry funding amount can be big or small.

 

 

Are There Any Platforms for Crowdfunding Businesses?

 

If you are already familiar with crowdfunding setups, you might have heard about FarmOn.ph. But due to the pandemic, the agricultural sector is not in a good shape for now and payouts may experience delays. The other good alternative is Cropital.

 

If you want to fund Real Estate properties, then you can go with Flint.PH. They are the first tech-enabled, low-cost Philippine real estate crowdfunding platform operated by Signet Properties.

 

If you want to fund businesses other than Real Estate, then SeedIn.PH is the right one for you. SeedIn is Southeast Asia’s leading Business Financing Platform where local businesses, seeking short-term financing, connect with business entities, seeking short-term investments.

 

You can also go traditional and fund the business ideas of your relatives, neighbors, or friends.

 

 

 

Takeaway

 

Investments, no matter what kind will always carry risks. It is your role as an angel investor to check the credibility of the business before funding. This is especially true if you are going the traditional route, where the deal is mostly done verbally because you trust the person.

 

 

 

Quote

 

"I'm a very active angel investor in a number of different companies."
David Draiman (Disturbed Vocalist)
 
 
 
- Your Life In Perspective by ÆlfRæd (Elf Counsel)
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