angel

Eight Types of Angel Investors to Avoid: From The Crowd Blog

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May 3, 2012

Marty Zwilling, CEO and Founder of Startup Professionals, an advisory firm for entrepreneurs, contributed a column in Fortune’s From the Crowd blog making the point that not all business angel money is equal. He lists eight types that might not be desirable as investors, including “sharks”, “has-beens”, and “litigious” angels.

 

Sharks, for example, can be identified by a tortuous term sheet process and litigious angels are quick to go to court and act intimidating and threatening in negotiations, while has-been angels, are a sort of wannabe angel who will waste an entrepreneur’s time because they are not really interested in investing. He recommends having legal advice for the angel round, and doing due diligence on would be investors.

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