Due to the recession, seed stage capital has become more and more expensive and investors have been very selective. If you need funds for your business and have not decided what the most suitable type of investor is, here are some of the features of super-angels.
The main difference between Super Angels and traditional Angel Investors is that Super Angels get even more involved in providing help to the funded start-up companies. What these two types of investors have in common is the relatively small amount of capital invested, that is, up to $250,000. They prefer to invest in the first stage of a business development, unlike venture capitalists.
These affluent individuals that provide not only capital, but also very useful advice, bring tech knowledge and connections to your company. Super Angels are preferred by many entrepreneurs as they offer deep expertise, acquired along many years, and a networking mastermind, thus playing a key role in getting start-up businesses off the ground.They describe themselves as being really aligned to the interests of entrepreneurs.
Super Angels usually prefer to invest in groups with other Angel Investors, so they pool money and fill the gap between angel funding and venture capital. They invest their own money, but there is also a network of business capital providers trusting and following them, the subsequent investments in the same company being based on a track record.
Another advantage of Super Angel investors is that, as they invest their own capital, they can make their own decisions, faster than venture capitalists, which is a real benefit for entrepreneurs. They also contribute to accelerating your business development, as they make connections in terms of partnerships, recruiting or sales.
Super Angels are said to bring a very high level of sophistication and their business groups are perceived as some of the most rapidly growing ones. If you intend to contact this type of investors you should, just like in the case of venture capitalists, have a very good business plan, with a high-quality executive summary, be very passionate about your business idea and have proven realistic future projections.