Welcome to Universal Wealth Creation.com

This site have been developed as a resource for people

searching for the best ways to create wealth and increase the

quality of their lives. Inside you will find reviews of the latest

Investment strategies available.

Wealth Creation

Home Page

FINANCE SITES

AFR
AFR BOSS

AFR Photos

Asset

BRW

CFO

Fairfax Photos

Fairfax Research

Leverage

MIS

MoneyManager

Personal Investor

Shares

Tradingroom

Business & Finance Articles

Introduction to Angel Investing
By: Murray Priestley

What is Angel Investing?

Angel Investing is the process of finding start-up companies and funding the early stages of their development in exchange for a share in the company and percentage of turnover. Businesses often opt for angel investment as the funds do not appear as a debt on the balance sheet. If the business chose to raise capital with a bank loan then if the company fails they are still liable for the debt.

Angel Investors are normally confused with venture capitalists. An angel investor is a passive investor that will fund an enterprise during the first stages of development. They will provide seed capital to companies who have potential for massive growth. Angel investors are normally wealthy individuals and their contributions are anything up to a $1 million. Venture Capitalists generally take a more proactive view of controlling the project as they often provide significant funding of $5 million or more.

Angel Investors make money by claiming a portion of ongoing turnover and also realize a large lump sum gain when the company is sold or floated.

How Angel Investing play a part in your portfolio

Angel investors can invest in a number of ways; with their own money direct into a start-up company, as part of a pooled fund known as an ‘Angel Group’ or through an Angel Investing Managed Fund.

The target exit time for angel investors is fairly long with a sale of their share coming after at least 5 years. That can seem a long time to tie up amounts around $1million. Angel Investing can be very risky if the correct due diligence is not conducted. As in every kind of investment you should thoroughly research your proposed strategy and make a decision based on the facts. Not on gut feeling or even market sentiment. Markets can change in an instant but solid numbers take time to appreciate or deteriorate.

If you have insufficient funds to directly invest into a business you could join an Angel Group. With a minimum investment of $100,000 you could join an Angel Group and have your funds diversified into a number of start-up projects. This will diversify your investment and you realise a gain that is an aggregate of the group’s total turnover.

If you are not comfortable with having your money tied up for a long period of time then an Angel Investing Managed Fund may be a suitable option. Returns are vastly diluted by fees, failures and by having your investment more liquid.

Angel Investing is definitely worth an investigation as the returns can be very high. The perceived risk of this kind of investment is high but relative to the potential returns, and relative to potential falls that can occur in the stock market, this kind of investment is stable.

About the author:
Murray J. Priestley is the Managing Partner of Portofino Asset Management, a private asset manager and publisher of the Portofino Report, an alternative investment education newsletter. For more information – http://www.PortofinoReport.com/

Circulated by Article Emporium

http://www.universalwealthcreation.com Wealth Creation | Financial Wealth

Copying or republishing this article is permitted with this footer included

Collect a Free 260 page ebook here: Universal Wealth Earn up to $1,000 per referral: Wealth Creation Affiliate

These property, finance, stock market & business articles have been supplied in the interest of Universal Wealth Creations visitors who want to expand their knowledge in the wealth creation & investment fields. All the business, finance, stock market & business articles have not been read as they are submitted remotely, so if you find any questionable facts in here or simply do not like it, please email webmaster@universalwealthcreation.com and we will review the material. As we find time to do so, we will go through all articles and remove any that appear not suitable. Other sites we recommend here at Universal Wealth Creation are: 21st Century Academy with Jamie McIntyre, Investor Finance, Universal Trading Solutions which promotes great wealth creators like: Kim Reilly, Simon Martin, Justin Beeton, Louise Bedford, John Kaye, Daniel Kertcher & more. They run great seminars across the country. At times we will publish dates for these seminars as they are made available around the counrty. Meanwhile, there is a great opportunity to learn about the finance, stock market & property investment field through reading these kind of articles. Learn about share trading, options, futures, CFD's, derivatives, warrants, indices & more in the stock market. You will also learn plenty about business, finance & property investing through authors opinions in the marketplace. Enjoy your journey towards financial freedom. We hope you will enjoy your visit.

Regards Sean Rasmussen - Universal Wealth Creation Pty Ltd

Site Map

Return to Index
Return To Universal Wealth Creation Home Page

Business & Finance articles