Some Benefits of Angel Investors

David Mindich graduated from Syracuse University with a marketing degree, prior to leading Minda Supply Company as director of sales and marketing and founding Thermal Paper Direct. More recently, David Mindich began service as managing partner of Mindich Capital, an angel investment firm in New Jersey.

Angel investors refer to individuals typically have $200,000 or more in annual income or a net worth of at least $1 million, who provide financial support for startup companies. Also known as seed investors, private investors, or angel funders, angel investors typically require an ownership stake in return for financial backing.

Although angel investors require an ownership position, they offer many benefits. Since they have an ownership stake in the company, angel investors have an incentive to add as much value as possible to help the business succeed. Angel investors often have industry expertise and connections that can strengthen the position of a young business. Moreover, these investors offer an alternative investment source outside of banks and financial institutions, which may refuse to provide support.