However, there are some disadvantages of borrowing bank loans. First of all, it provides the necessary documents and details which often make the process frustrating and cumbersome. Secondly, bank loans are generally sanctioned against some collateral, often the entrepreneur’s house and property. This stands the risk of being lost to the bank should the business fail to take off. 3.6. Angel Investors: The concept of angel investors appeared during the past two decades in the United States and Europe. They are defined as “high net worth individuals who invest their own money, along with their time and expertise, directly in unquoted in which they have no family connection, in the hope of financial gain”. An angel investor has income of $200000 per year which the expectation that this income will continue into the future. Angels tend invest start-up capital into a company’s seed round of investment Angel investors invest their own money, where the capital is in the amount in the $25000 to $100000 range. Because angels invest in early stage, they have a higher risk to take into consideration. What angel investors look for is a greater team with a good market that could
You've reached the end of your free preview.
Want to read all 3 pages?