5 Types of Angel Investors

One of my angel friends wrote this up for us today at Plan to Start (alright, he actually talked while I wrote).  He gave each one of these investors a title & personality, so I hope you guys enjoy this today!

Before you read it though, I’d really like to say it’s all about finding the right type of angel investor for you…which can be a number of different things, including investment style.  Also, I’d really love to hear which type of angel investor looks better to you.  I think I’d pick #1 or #3, but that’s just my personal opinion:

Here are the 5 Types of Angel Investors

1. The Coach Angel Investor

This type of angel investors is best suited for:

  • Young entrepreneurs or first timers.
  • Want a positive influence vs control.

One on One

Our friend profiled this type of angel investor as slightly emotional thinkers, who enjoy one-on-one relationships, and the “people” aspect of investing.  And likewise, the Entrepreneurs they tend to want are very similar.

Trusted

  • Someone to trust when you don’t know where to go.
  • Although doesn’t prefer to be involved in strategic operations, they are a “roll up their sleeves and help” when the situation demands for it.

types of angel investors2. The Do’er Angel Investor

This type of angel investor is best suited for:

  • Non Do’ers
  • Visionaries
  • Thinkers & high tech engineers

High Strung

High strung may be over exaggerated, but this type definably can’t sit still.  He talks fast, gets straight to the point, loves to get this hands dirty, and probably excels in strategic operations.

Day to Day Operations

This can also be referred as a type of angel investor known as a “active investor/co-founder”.  He may take an active role in the day to day operations of the business, perhaps just a few hours a week, or even full time.

types of angel investors3. The CEO of a Public Company Angel Investor

This type of angel investor is best suited for:

  • Entrepreneurs that don’t need alot of direction or advice
  • Entrepreneurs that need high level strategic partners

Limited Time

The CEO of a public company is very busy; and may be easily annoyed with constant time commitments involved in your business.  For this reason, he looks for Entrepreneurs that don’t need alot of direction or advice.

Good Connections

On the flip side, this type of investor is well connected because of his role at a public company; and can easily make high level connections that you otherwise wouldn’t be able to secure.  And he can do this without expending a lot of his own time.

types of angel investors 34.  The Spectator Angel Investor

These types of angel investors are best suited for:

  • Financially stable companies
  • Co-investing with stronger investors
  • Companies with less risk/lower returns

Reports, Nothing More

If you ever hear an angel investor say “I just care about the bottom number, I don’t want to have anything to do with the company”…this is what we call a spectator.  All this investor wants is the financial report, and to know how his investment is preforming.

Co-Investing

Because of his non involvement (which there is nothing bad about this), this type of investor will often co-invest with larger active investors he knows to ensure a safe return.  Or if he invests alone, may choose to invest in companies that have little need for strategic direction, connections, advice, etc.  ie: Financially stable companies.

types of angel investors 45. The Boss Angel Investor

This type of angel investor may be best suited for:

  • Founders who don’t want to be actively involved at all.
  • High tech genius who has developed something remarkable.

Running the Show

Someone has to run the show in a business, and if no one is currently running the show your business will probably be in trouble (which believe it or not happens alot).

Can be overbearing

Caution is recommended if you wish to remain actively involved in your business, or excel in leadership, which most entrepreneurs do.  There is often a lot of power struggles going on there.

What type of angel investor would you want in your company?