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Do angel Investors Own Your Business?

The Fintech market is growing rapidly and with it, come many opportunities for investors who want to benefit from new startups in the sector. More and more companies are enhancing or improving their offerings to consumers and other businesses that utilize technology.

As new companies come into the market they face a significant level of competition. However, with the help of an angel investor they can make their mark.

What do angel investors want in return?

When an investor puts their money into a new business, they expect equity in return. In most cases, this is around 25% of the business. However, there are some investors who might ask for as much as 35% of the business.

This may be due to the level of risk that they are taking. For example, if the team behind the startup has never been in business before but they have an idea that can be very profitable, the investor might decide to take the risk even though the entrepreneurs don’t have proven experience.

Angel Investors Don’t Want To Own Your Business

A Fintech angel investor can provide you with funds that help to get your venture off to a good start. They don’t want to own your business.

This is why they ask for a relatively small amount of equity in return for a significant amount of capital. If a business venture doesn’t work out, they will lose their money and the entrepreneurs will walk away with experience.

Angel investors want to be able to put their cash into a business and gain a profit from that investment. They aren’t interested in taking over a business or telling the startup team anything about the way in which they should operate or implement their ideas.

Is your company their only investment?

Most angel investors have money in several companies. In fact, some of the leading angel investors have put capital into over a hundred businesses.

They do this for several reasons, including for national development. Every idea that comes on the market and has the potential to improve the way that businesses in the financial sector operate, can change the way that consumers use their assets.

When an angel investor puts money into that type of idea, they can positively impact their community and their country. Many are fans of technology and have invested in several companies around the world. However, they may actually … Read the rest