Some of our angel investors are celebrities. Their name recognition, obviously, helps us a great deal. It assists in raising the profile of our brand and all of our products. Right after Snoop Dogg became an investor with us, we did a Facebook Live to announce it. Doing these kinds of appearances definitely helps our online presence as well.
When actor and activist Jaime King invested in my startup, it gave us a new layer of credibility. There is a lot of compelling data in favor of influencer marketing, so finding a well-known investor is advisable in the founder community. People trust celebrities, so having one get behind your brand is an effective way to expand your total addressable market.
Angel investors often invest in specific industries where they accumulated experience and built relationships. Their broad networks are usually unique assets they bring to the business. It enables founders to establish contact with business leaders and other advisors. They may also recommend other trusted firms across the supply chain to unlock synergies and expedite building competitive advantage.
If you're luck enough to find an angel investor, you should also understand that their worth fair exceeds a monetary value. Most have worked with numerous companies, and perhaps even with several in your own niche. This means that this isn't their first time around the block, and they 've gained valuable experience along the way, which you, too, can learn from as you build your brand.
We've done a friends and family round, plus Tony Hsieh, the founder of Zappos invested in us along with the CEO of Reddit. Our investors have provided me with great examples of what it takes to make a business run well. These lessons about what makes a successful startup are priceless. I'm grateful for the insight they give me.
One of the most important and value additive things our angel did for us early on was providing back office support. Our angel investor had numerous seed investments, and to help these ventures grow, he had started a service company to provide back office support to all his startup investment companies. For free, he provided us with bookkeeping services, HR support and even attorney services when we needed to sign a new lease. In essence, we were able to outsource most of our mundane, administrative tasks to his team so that we could focus on what mattered most - our business. From what I understand, not all angel investors provide this level of support for their seed companies. But if your potential investor does provide this level of service alongside their monetary investment, I can say from experience that it’s worth its weight in gold.
Angel investors sometimes become quite more than just someone to help build capital. If you choose wisely, a venture investor can quite often serve as a mentor. And since they have a monetary interest in your company, they only hope for you to succeed. Therefore, it can become natural for them to provide you with information, as well as helpful advice, should you be open to it.
Besides having financial resources, angel investors are often tapped into networks of talent, and can provide resources in which to identify and recruit all levels of candidates. Most angel investors are entrepreneurs and have been involved with extensively with at least one venture capital company, giving them both ownership and management experience, meaning that they have had to traverse over the hiring process, gaining both experience and access to talent. Whether it is in marketing, supply chain management, HR, or public relations, angel investors generally have a wealth of information, contacts, and invaluable experience identifying the proper individuals for each role. By using your angel investors’ experience and resources in hiring, you can better ensure you will be bringing in the highest quality candidates and your business’s success.
Not all support is financial–some of the best contributions I’ve received from my angel investors has been their advice. A number of angel investors I’ve known have run their own successful businesses, or have supported successful startups, and their insight has been invaluable as we lay the groundwork of our company’s vision. Sometimes it’s been conversations at support dinners, other times it’s been a quick phone call during the day, but either way, guidance can be just as, or even more, valuable as any influx of funds.
One way that angel investors help startup founders is by providing access to their networks. This can include introductions to other investors, potential customers, or partners. Additionally, angel investors may be able to provide advice and guidance on how to grow and scale the business.
Angel Investors have the experience and knowledge needed to thrive, and they have a good understanding of the market and the viable products. This is because they are wealthy individuals, mostly retired entrepreneurs and investors who have been in business for a long time. When investing in a startup business, they can see the high potential for its growth and utilize its competitive advantage. Their knowledge and experience are of great value for the development of your startup.