An angel investor is a high-net-worth private investor who provides financial assistance to small startup companies in exchange for stock or royalties. Some angel investors make a one time investment, others provide funds over a period of time in order to get the company off to a good start. Angel investors use their own funds. They are not investment bankers, private equity firms, search firms, or venture capital firms. Angel investors are also known as business angels.

Investments made by angel investors carry a high degree of risk resulting in a relatively high cost to the entrepreneur seeking the funds.

The Securities and Exchange Commission (SEC) allows only accredited investors to operate as angel investors whether investing alone or as part of an angel investor group. Most angel investors belong to an angel investor group so they can reduce their risk through diversification and share the cost of due diligence that is required before an investment is made.

The principals and senior management of Pacific Business Advisors are able to make or arrange angel investments to entrepreneurs starting certain types of businesses. Call Michael Chulak for additional information.

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Shareholders' Agreement

Business Startup Checklist