Are you wondering which investor platform is better among angel investors and crowdfunding for your start-up investment? This WealthHow article will guide you with regard to what to choose between the two.
Angel investors usually like to invest in a company which is able to return at least 10 or more times of the actual investment in a span of 5 years. If they find that the company is not doing well after the start-up stage, they will promptly remove their financial support. Hence, beware when opting for angel investors.
If you have an idea that is waiting for a take off because you are confused about choosing the right investor platform between angel investors and crowdfunding, try to list down your requirement on a piece of paper. Thereafter, weigh the pros and cons of both these types of investors and zero in on the right option. While angel investors are not interested in small investments, there is a restriction on the amount you can raise through crowdfunds. Apart from money, angel investors also provide valuable guidance and good contacts that help the business. However, if you have an innovative idea which you want to reach to the masses, it is best to go for a crowdfunding as it also entails publicity. If you are still confused about which is better, read the following sections that will provide a distinction between the two.
Now that you know what to choose between angel investor and crowdfunding, find an option that will benefit you most in financial terms. Remember that whatever you choose, set clear terms for investor exit so that conflicts can be avoided.