Entrepreneurs can work their best when under the wings of angels

February 12, 2012 12:00 am

Share with others:

Successful entrepreneurs are focused individuals who come up with a product or service idea, create a company around it and then do everything they can to make it successful. Most technology companies have started in this way.

One of the things entrepreneurs need is capital. They often look for people who have the resources to get them off the ground, get them to the next step or keep them from running aground from unexpected problems.

Pete DeComo -- chairman and CEO of ALung, and an entrepreneur who already has successfully launched several businesses that have returned millions of dollars to his investors -- says one of the 10 ways to tell if you're an entrepreneur is that "your rich friends wince every time you catch their eye."

Those rich friends to whom Mr. DeComo refers fall into a class of investors, known as angels.

According to Catherine Mott, CEO of BlueTree Allied Angels, there are various types of angels and each type matches certain types of entrepreneurs or entrepreneurial companies. (Ms. Mott also serves as board chairwoman of Angel Capital Association, a national association of angel groups that invest in high-growth, early-stage ventures.)

Friends and family angels invest in you because you're a buddy, a niece or nephew (or other relative). They often don't understand your business but want to help you go do it.

Individual investors often invest in industries or product categories that they know. You bring them an idea, they get it and they give you the money. Often they're already working in a similar industry or with a similar product, but sometimes they just like the idea, perhaps realizing that it even applies to them as potential users.

Sometimes people who received inheritances will invest in you. According to Ms. Mott, they have disposable dollars and are happy to invest in an idea that could help the local economy.

First Published 2012-02-11 23:13:28
PG Products