An angel investor is a wealthy individual willing to invest in a company at its earlier stages in exchange for an ownership stake, often in the form of preferred stock or convertible debt. Angels are considered one of the oldest sources of capital for start-up entrepreneurs.
Investors can infuse new, job creating companies with the lifeblood of growth: Equity. Plus, angels don't just write a check and say "good luck". Instead, angels are often part of the startup's advisory board or even their board of directors. This allows experience and expertise to be transferred to the start up in a meaningful way.
All angel investors must qualify as "Accredited Investors". To qualify, you have to meet a certain set of criteria set up by the Securities and Exchange Commission (SEC). If you meet the criteria, you will not need to apply until you are ready to join an angel group. This process is usually handled by individual angel groups as well as by any entrepreneurs you identify for possible investment. For more information on the criteria for accredited Angel Investors, please visit the Securities and Exchange Commission or the Wisconsin Department of Commerce.
Also, click here for more information about SE Wisconsin Angel Groups.
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