Angel Investors

An angel investor or angel, is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel networks or angel groups to share research and pool their investment capital.

To successfully accommodate angel investors, you must also be able to provide an exit strategy to these investors in the form of a liquidity event like - recapitalization, public offering or buyout by a larger firm. If things are going very well, be sure your agreement contains an early out clause to remove them sooner at less cost.

The NIACC JPEC is the administrator for the North Iowa Venture Capital Fund II, a group of 68 investors from 19 North Iowa communities and through its contacts has affiliation with many other similar funds in Iowa and out of state including Iowa Farm Bureau Federation and Wellmark. See also the Venture Network of Iowa.

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