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Angel investors are the first round of external funding you look for when you're trying to get your company out the door. If your business is high-risk and is in its seed stage, Angel investors will want to invest in it in return for equity capital.

These investors might use their own cash or form a network consisting of other angels to generate more investment capital for your start-up.

But angel investors bring more to the table than just their capital. Here are some of the other things they can do for you;

Experience: When an angel investor invests his money into your business, he expects a seat the board of directors or havean active management role in the company. This is good because it provides the entrepreneur with an experienced veteran to help drive the company forward and make it profitable. Mentoring at this stage is invaluable.

People: Due to their vast amount of resources and access to various networks, angel investors would be able to help you locate experienced managers for key positions in your company when it begins to grow.

Network: Angel investors will also be able to connect you to a broader audience of investors and potential partners. The key to business is networking and angel investors are your window to this.

It may be tempting to pursue venture capital investment but if you business is in its seed stage and is not in the technology industry, angel investors are really the best first choice.

Just remember to have an exit plan ready and protect the interests of your company. It is very easy to lose control of your entire business once investors come in, therefore tread carefully and purposefully.

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