Finding an angel investor that will answer your funding prayers

Typically, angel investors put up anywhere from $10,000 to $250,000 in early-stage businesses. Unlike venture capitalists, who draw upon money from institutions, angels put their own money into the game. They tend to be wealthy people looking to get involved on the ground floor of a growing business because they want to share their years of expertise, take advantage of tax benefits, or they see a shrewd investment opportunity.

Angel investors look for a sound business plan that clearly demonstrates how the business will work. They want to be convinced that management will be able to implement the plan.

While angels are typically more patient than traditional lenders, they want to know how soon the business will be able to see a profit. Generally, they do not want to be the only source of funding and want to know where future investment capital is likely to come from.

Full Story: http://sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2006/07/26/BUGHPK5AK11.DTL&type=business