What is an Angel Investor?

Entrepreneurs looking to start their own business often need some sort of funding in order to help their ideas get off the ground. In some cases the entrepreneur might already have funds and be able to use their own savings to start the company. But more often a loan is needed. Unfortunately, banks are less likely to give a loan to a new company that has yet to establish a credit line (and perhaps less so in the current global market turmoil).

This is where Angel Investors (also known as Business Angels) come into play. These are either individuals or groups of people who are looking to make an investment. With current stock markets becoming a roller coaster ride, many more investors in recent months have looked for businesses to invest in. They find interesting new businesses and entrepreneurial ideas, and then form a sort of business partnership with them by investing their own capital in the idea. Some investors may want a hands-on approach, and usually provide the benefit of good advice and a long list of contacts that may help your business reach the next level. On the other hand, some may just want to be “Silent Business Partners” – who invest in the company strictly for a set amount of returns within a set time period. Of course, the investor has to really believe in your idea in the first place.

Most Angel Investors are based in the US and Europe, but over the past few years, many angel investor groups and networks have formed in New Zealand. The New Zealand government also has helped these investments progress, with recent initiatives such as the Seed Co-Investment Fund, where they also act as a passive co-investor.

This branch of the Angel Investment Network (New Zealand Investment Network) connects hundreds of angel investors based within New Zealand, with entrepreneurs based both in New Zealand and internationally. We are an online community that gives entrepreneurs the ability to generate funding for their business, while angel investors can find investment opportunities.

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