Angel Investor Example

It is defined as angel investor or Angel, to a prosperous person, who invests in a company that is starting and that has a simple or very broad risk profile.

The angel invests its own capital in initial companies, similar to SMEs, as opposed to investment companies or companies, which use foreign capital for this purpose.

The companies in which the “Angel Investor”Are defined as Star-up companies, which can have great risks to invest.

The objective expected by the Angel investor to acquire shares and preferences over the nascent company and is one of those considered seed capital together with the investment of family and friends.

He is an adventurous investor, since he participates in the so-called “Venture Capital” (venture capital).

This is the source of capital for so-called Star-up companies that have a chance of success.

Angel Investor Example.

The company FarmaPrince S.A de C.V has been created, which will be a pharmacy that will sell medicines with home delivery and that will provide a home doctor service.

As it is a small company and by its nature it can be considered risky, due to the large pharmaceutical market, it needed an investment enough to start and for this he sold shares to an angel investor, who has enough capital to finance said business.

Due to the capital required, seed financing from the family and friends is not enough, and Investors in investment houses consider it convenient to introduce capital into a company of such level.

The angel investment, which accepted said investment was a superior company, which, even dealing with various branches, decided to deliver sufficient capital for the realization of laziness from its foundations and for this reason he became an investor controlling.

To make this investment, the angel investor carried out preliminary investigations to verify the viability of the company, and it was considered that the investment could be returned in a period of less than four years, granting the credit correspondent.