When we think about the Angel investor figure, we cannot help but think about someone who comes to save us! And honestly, angels think of themselves this way: An angel falling from the sky, coming to the rescue, helping get our start-up out there.
And you know what? Angel participation can help and change the path of a start-up, making it succeed. Studies based in the USA show that companies that received funding from groups of angels are :
• 25% more likely to survive after 4 years
• 11% increase in chances of exit.
• 19% more likely to reach 75 employees.
But as we know, angel investing is not all about money. Angel investing is so much more than that. And now the question arises:
In which other ways can investors help and guide the start-ups they are investing in?
There are many ways and levels in which Angel Investors can participate in the raising of the start-up, but also to what extent Angels should help and in which situations they should step back.
“The Archangel plays this unique role, keeping regular communication with the founders, discussing the business, and interacting with the rest of the angels. Having an archangel makes the relationship more efficient since founders won’t need to be explaining the same thing again and again. It makes things more empathic since having someone putting their feet in the shoes of the founder makes a big difference. This also makes the support more effective since when it comes to requesting specific help, activating the personal and professional network of angels, understanding when there is nothing to do except letting the startup work can happen more smoothly.”
Check Cintia Mano's (COREangels and COREangels Atlantic) full article about Archangels here. You can also check out our “How Angel Participation Can Increase Your Financial Return” event in Portuguese here.
Founders in our funds know the benefits of having the expertise of angel investors in their start-ups.
Here are some success stories: