Factors to consider before using an Angel investors

Augusta

VIP Contributor
Angel investors which are also known as private investors, seed investors or angel funders are high-net-worth individuals that offers inancial backing for small businesses..These are people that look at business that are scalable to invest their funds for the financial growth of the business and more profit to them.
So if you are about getting an Angel investor into funding your business then you should consider some factors and be good with it before going ahead

The loss of complete control as a part-owner
With the use of angel Investor or investors you lose the complete control of your business as a part-owner. So you need to consider this.

No more complete decision by you
Your angel investor will have a say in how the business is run. So it will no longer be you taking decisions alone about the business You would need to involve the Angel investors.

Receives a portion of the profits
With Angel investors there will be allocation of the business profits to them and profit shared to them when the business is sold. With debt financing.
 
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