Angel investment means that individuals contribute money to help entrepreneurs who have special skills or unique ideas but lack their own funds to start a business, and take high risks in starting a business and enjoy high returns after success, or it is a one-time upfront investment made by free investors or informal venture capital institutions for original project ideas or small start-ups Angel investment is a special form of venture capital, and angel financing has the following characteristics:

Angel investment generally only provides "the first round" of small investments. Angel investment is generally an individual investment, which belongs to individual or small business activities, so the amount is generally small. "Angels" only use their own savings, which is not enough to support large-scale capital demand, so those entrepreneurial plans in the early stage of development can be favored by them.

(B) angel investment often has a strong emotional color. The process of persuading "angels" by entrepreneurs often requires a certain emotional foundation. Entrepreneurs and "angels" are mostly like-minded relatives and friends, or introduced by acquaintances.

(3) The financing procedure of angel investment is simple and quick. Because "angels" only invest on their own behalf, the investment behavior is accidental and random, there is no complicated investment decision-making procedure, and investment decision-making is mainly based on investment in people, so the investment decision-making speed is very fast.

(D) "Angels" have short-term behavior in treating investment projects. Angels invest with their own funds and have high expectations for the return on investment. The anti-risk ability of this investment form is not as good as that of large investment companies that can spread risks through portfolios, so "angels" are not tolerant of losses and are short-sighted.

(5) Angel investment is a high-risk and high-return equity investment.

Financing skills

Angel investment has not yet formed a strong investment group in China. However, because angel investment is hidden in private capital, the amount is huge, which can greatly meet the capital needs of start-ups and is an important financing method for entrepreneurs. Although angel investment is very efficient in helping start-ups, it is not easy for angel investors to pay the bill. The process of obtaining the support of angel investors is the process of demonstrating the investment value of entrepreneurial enterprises and developing the financing skills of entrepreneurial entrepreneurs. Generally speaking, we should pay attention to the following questions:

Looking for "angels"

In order to obtain the financing of angel investment, we must first find investors who can be "angels". Generally speaking, entrepreneurs can find the "angel" of angel financing through the following methods:

1. Introduce by friends;

2. Go directly to the "angel" in your mind;

3. Participate in private entrepreneurs' gatherings, financial forums, theme seminars, salon activities and other activities similar to "angel" gatherings;

4. Use their own financial advisers, legal advisers or related financial consulting institutions and other intermediary organizations;

5. Search the list of "angels" through various industry organizations such as the Chamber of Commerce of the Federation of Industry and Commerce, industry associations and investment companies.

(B) to understand the "angel" evaluation criteria for investment projects

In order to win the favor of angel investment, entrepreneurs should also understand the criteria for angel investors to judge investment projects, including the following points: whether it is attractive enough; Whether there is a unique technology; Whether there is a cost advantage; Whether new markets can be created; Whether it can quickly occupy market share; Whether the financial situation is stable, can you get 5! 10 times the potential return on investment of the original investment; Whether there is profit experience; Whether it can create profits; Whether there is a good entrepreneurial management team; Whether there is a clear investment exit method, etc.

(3) Be prepared for the negotiation according to the characteristics of "angels".

Before negotiating with the "angel", the preparatory work that needs to be done in advance mainly includes two aspects: data preparation and psychological preparation.