Angel investing

Angel investment is becoming increasingly sophisticated. “It’s not what it used to be. It’s getting more organized and more professional.” Angel investors can be valuable to a start-up because they can offer advice and contacts in addition to early, high-risk capital.
Yet it remains difficult to round these angel investors up. Angel investors tend to travel frequently and miss meetings, or have trouble following up.

Companies should take on more than one source of funding, since other venture capitalists provide additional “brain power”.
You should try to take a round (of financing) with three venture funds together so that when you hit a problem – and you will hit a problem – you don’t have just one decision-maker.

Excerpts from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1215

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