What Is an Angel Investor
There are a plethora of definitions on angel investing but we resonate most with Dr. Scott Shane’s definition. In his book, Fool’s Gold, he defines angel investor as an individual who invests his/her own money in private companies that are run by someone else who’s neither a friend nor a family member.
Make no mistake, professional angels do and may occasionally invest in companies operated by friends and family members, but Shane’s definition effectively differentiates angel investing from friends-and-family investing.
In any case, whereas a passive investor only provides funding, an active investor brings more than just money to the table. This includes expertise, management advice, and/or access to important contacts and markets to startup ventures.
Some angels invest full-time while others do it part-time or as their hobby. Either way, angel investors are admirable early risk takers who play a crucial role in fueling innovation and economic activities.
As an angel, your support and investment money may help bring a startup from zero to profitable, or better yet, turn it into a world-class organization and profit from its home run success.
Imagine being one of the angels in Google.
Venture Hype studies and interviews sophisticated investors and seasoned advisors in the venture and angel investment community, and turns raw insights and observations into practical information that helps readers understand how angel deals get done.
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It’s an age old question, but what’s in a name?
“Hype” generally carries a negative connotation but we look at things differently from the mass. Just as successful investors see opportunities where others see risks, we venture where others fear to tread. And we use “Hype” to refer to our extreme enthusiasm for what we do.
Venture: a business enterprise or speculation in which something is risked in the expectation of profit; to take a risk; dare.
Hype: to stimulate, excite; to promote heavily.
Venture Hype: to convey enthusiasm about startup ventures and ignite the angel investing scene.
And why wouldn’t we be hyper about startups?! Did you know that angel investors enjoy the highest return among long-term equity investments, with an average 27% internal rate of return?
Pretty impressive. It’s the first thing that gets our juices flowing about this “field.” When combined with our excitement over smart and innovative startups they became the reason we chose our name.
It’s hard to show you how incredibly excited we are about promising ventures and angel investments, but if you were standing next to us right now, we’d be jumping up and down on the sofa. (Tom Cruise anyone?)
So since you can’t see us performing feats of unbridled enthusiasm, we picked a name that hopefully makes you want to be jumping up and down on the sofa with us. Perhaps catching fire, too.
Venture Hype — Where Venture Angels Ignite™
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