energy investment partnersEnergy investment partners are often crucial to a project getting off the ground and to the marketplace. If you have a concept, startup or project that needs funding, there are a wide variety of financial sources you should be looking at, including angel investors. Here’s how to tell if angel investors are the right energy investment partners for your energy project.

What Are Angel Investors?

Angel investors originated in the Broadway theater district. “Angel” was a term used for individuals who were wealthy and would fund theater productions to prevent them from shutting down. Currently, angel investors are common in many industries including healthcare, technology, energy and invention.

Angel investment firms are often made up of retired entrepreneurs or executives who have accumulated some wealth and want to invest it in startups and entrepreneurs in the early stages of their business. Unlike other types of investment firms, angel investors want to provide guidance and mentorship to the individuals and businesses they choose to fund. This can be hugely beneficial as they can provide valuable management advice, contacts and networking opportunities for the startups.

How Does Angel Investing Work?

Before you decide on the path to pursue for funding your project or business, it’s important to understand how angel investors work. Angels get involved in a project in the very early stages, often when the product or service is still in the concept phase. They offer funding that ranges from $5,000 to less than $1 million. The goal is to help businesses reach significant milestones rather than to fund the entire project. They will most often obtain some equity in your company in exchange for the funding.

Is an Angel Investor the Right Energy Investment Partners for Your Project?

You need to be very clear about your funding goals when choosing your energy investment partners. If you want to move forward independently without any help or guidance from someone with experience in the field, you should consider a source other than an angel. However, if you believe you could benefit not only from seed money to get your project past the drawing board stage but also from expertise from an industry veteran, an angel might be the right partnership to launch your project and lead to a successful venture.

All new businesses, but notably energy start-ups, are challenging to grow and build into a viable product in the current marketplace. There are so many creative and innovative individuals and companies that it can be incredibly competitive, especially when you’re looking for the right funding source to give your project or concept momentum.

When you’re doing your research, be sure to consider angel investors as a viable source of funding as well as valuable insight, guidance, and networking when you’re working to get your business off the ground. To find out more about what these energy investment partners can offer, take a look at Activation Investments.

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January 16, 2017 8:41 am Published by