Tyler Texas Angel Network
Entrepreneur Information    
Who is eligible? 
Anybody with an existing business, idea, or plan is welcome to contact the TTAN. As mentioned above, the TTAN staff can determine if you are a candidate for the Angel Investor group or connect you with the help you need to pursue your business or idea. Either way, we are here to help!
  
What kind of Entrepreneur is most likely to succeed with an Angel Investor?

Angel Investors are looking for product or business ideas that have the potential to meet the following criteria:

$Can reach $1 million dollars in sales within three years

$Has a high gross margin

$Has potential to reach over $10 million in sales long term



If I get an Angel Investor, how long will they be a part of my business? 

The Entrepreneur should plan to grow the company enough to exit the investor within five years. The exit is generally done in one of three ways; IPO, company sale, or investor buyout.

What is the difference between angels and venture capitalists?

While both invest in entrepreneurial firms and take equity (ownership) in those businesses, there are some important differences:

  • Funding source- Angels invest their own funds directly in a business, while venture capitalists invest funds from other sources (e.g. pension funds, insurance companies, foundations.
  • Stage of entrepreneur - In general, angels invest in seed, start-up and early-stage businesses, while venture capitalists invest in later-stage businesses (although there are exceptions).
  • Size of investment - Venture capitalists generally invest $2 million and up in a financing round, while individual angels make much smaller investments ($5,000 to $100,000). Angel groups can make investments in the mid-range, between most individual angels and VCs.


How do I know my business is right for an angel group investment?

Angel investment is the right source of funding for only a small proportion of entrepreneurial businesses. When considering yourself for investment by an individual angel or angel group, ask yourself these key questions:

  • Am I willing to give up some amount of ownership and control of my company?
  • Can I demonstrate that my company is likely to realize significant revenues and earnings in the next 3-7 years?
  • Can I demonstrate that my company will produce a significant return for investors?
  • Am I willing take the advice from investors and accept board of director decisions I may not always agree with?
  • Do I have an exit plan for the company that may mean I'm not involved in 3 7 years?

The Tyler Texas Angel Network (TTAN) does NOT sign Non-Disclosure Agreements (NDA's)



Tyler Texas Angel Network (TTAN)
P.O. Box 6086, Tyler, TX 75711 US
Website: http://www.tylertexasangelnetwork.com
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