Angel Investors Texas

Frequently Asked Questions

Q1. How do I find an angel investor?

If you are a Texas entrepreneur on a lookout for Texas Angel investors, then Funded.com is definitely the place for you. We connect entrepreneurs and investors and help them realize their financial goals. Texas entrepreneurs can register through the website and find venture funding from our angel network so they can soon be venture partners. Our website has an A+ rating at the Better Business Bureau so all our angel investors in Texas are actually accredited. What’s more, we’ve been in the business of connecting Texas entrepreneurs to secure venture funds for more than 12 years now. Accredited Texas investors can also join our roster of Texas investment network and help seed the next best idea by becoming capital partners with a business startup. Our investment network state-wide is vast which includes the North Texas angel network, Baylor angel network, Central Texas angel network, Houston angel network, Southwest angel network and the Cowtown angels. So if you are on a look out for a venture partner, do your due diligence and visit our website now.

Q2. Do you pay back angel investors?

When you borrow money from financial institutions in order to finance your business, creditors will expect you to pay it back plus interest. This is regardless of whether or not the business actually becomes successful. Angel investors however, do it differently. Angel investing is generally riskier but one of the most profitable investment opportunities. An angel investor is like a capital factory that invests in a startup during the seed round when money raised is used to pursue business development strategies. All they ask in return is an ownership stake in your startup. A venture capital firm also functions this way. If the venture is successful, both entrepreneurs and investors will reap the reward. If however, your startup fails angel investors will not ask you to pay back their angel investment. However, even if you are not required to pay back venture funds invested in your business, giving angel investors especially Texas angel investors a stake in your company gives them a portion of your future earnings. It is important therefore to do your own research on Texas angel networks.
However, even if you are not required to pay back venture funds invested in your business, giving angel investors especially Texas angel investors a stake in your company gives them a portion of your future earnings. It is important therefore to do your own research on Texas angel networks.

Q3. What questions do angel investors ask?

As previously mentioned, angel investors are risk takers. But like most venture funding providers, they take calculated risks so it is important to know what they’re interested in knowing when you come up with a business plan to pitch. Texas angel investors for example are interested in knowing what your business is really about. Think of this as your “elevator pitch.” You must be able to create something that is easy to understand and something that can be remembered easily. An investment network of angel investors also like to evaluate competition right at the beginning of the game. If you want to dive right in and get your hands on some venture funds from a Texas angel network, then they need to know if you truly have an edge over competition. Speaking of more competition, angel investors especially Texas angel investors, will also want to know if your business How startup can easily be duplicated by major players in your chosen industry. You need to learn to highlight your competitive edge. Angel investors are also interested in actually understanding the numbers you come up with in terms of how much money you needed to raise and how far in the business operations will these funds get you. Furthermore, an angel investor also likes to get involved in your startup's marketing strategy and if there are already customers to your business. They also would like to know if there is a clearly defined target market.

Q4. What do angel investors look for?

People don’t usually just give you something without getting something in return from it. Angel investors are no different. They expect a return on their investments. In order to make sure it becomes a profitable venture, angel investors consider the following factors. This is especially true for Angel investors in Texas.
a.A reliable and visionary management team -- That would steer the company into the right direction and ensure long-term profitability.
b.How big your idea actually is -- Angel investors are concerned about the impact your startup will have. The bigger the potential market, the more will they be interested in pursuing your startup as one of their investment opportunities.
c.Potential risks to the business -- Angel investors, especially Angel investors in Texas, are risk takers but as mentioned over and over again, a smart investor takes calculated risks. So angel investors want to make sure that they can anticipate if not prevent anything that might threaten the success of a business startup.
d.How the investment capital will be used -- Some angel investors like to get involved in business development so they would want to know how the money raised by your company will be used.
e.Financial projections -- Angel investors are very much interested in your projected numbers. Are they reasonable and believable?