It
takes much less time, on average, to meet with and receive
funds from a private angel investor than a venture capital
firm. The due diligence (investigation of a companies principals
and background) is less involved with an angel investor,
and angels typically expect a lower rate of return. Unlike
venture capitalists, private angel investors are willing
to wait for longer periods of time before receiving their
return on investment. private angel investors are mostly
concerned with the success of the business and are willing
to do what it takes to see the business grow and succeed.
Instead of requesting a large share of ownership in the
company being funded, private angel investors usually will
want to have an active role in the management of the company
and use their experience to get the business off the ground,
generally this is a benefit to the business owner to leverage
the knowledge of a successful private angel investor.
