You are the developer of Solar Slinger Sasquatch, a solar-charged product that chases sleeping Sasquatches in the land of The Unknown. Problem is you need forty-grand more to launch it. Your wealthy Aunt Sue, a well-known podiatrist, offers to give you forty grand in exchange for 4% equity in the company. Sue is an angel investor with wings on her back (well, feet). She loves your enthusiasm, isn't a venture capitalist, wants you to succeed, and is willing to offer access to her deep pockets. However, she's not an archangel investor.
An archangel is someone who has done tons of angel investing to the point of fame. For example, Silicon Valley's Ron Conway would be considered a former archangel. In his heyday, he pegged (no, not that kind of pegging) companies like PayPal and Google...and has gained notoriety for his power and influence. Same concept, grander scheme of things.
And another take: In the middle ages, theologians enumerated a complicated hierarchy of angels, from Seraphim and Cherubim at the bottom all the way to Archangels at the top. And above them was Tiger Woods…you know…until The Event. (See Purgatorio for details.) Modern finance has partially transplanted these concepts to the realm of investing, if only in a metaphorical, somewhat stunted form.
There are no "Seraphim investors" at this point, but there are angel investors (people with money who use that cash to fund startups) and above them, there are archangels. This last category includes angel investors who have successfully made money on their startups, giving them a significant reputation in the investing community.
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Finance: What are Angel Investors and Se...8 Views
Find it a la shma What are angel investors and
seed funds Just call me angel Thanks That's All right
It's early in the morning here and we just do
that sometimes Yeah All right Well an angel investor is
typically i'm sorry Won't sing again An angel Investors typically
someone who was wildly successful in an entrepreneurial venture of
their own They feel a kind of moral obligation to
recycle their winnings And in most cases very very early
stage companies are so extremely risky with failure rates over
ninety nine percent Well that it takes some kind of
angel to come in and invest the first few hundred
grand Get them started building that nose picking device the
world has always wanted no And since in most cases
very early start ups have absolutely no idea what they're
worth So many initial angel investments carry no price meaning
that there was only one term carried by the money
invested It will be valued at say a ten percent
or whatever number discount toe whatever valuation The next round
if there is one values the company at while the
first few million bucks into google by a small handful
Of already successful silicon valley types ended up being converted
into stock in their initial or a round which was
done at a whopping almost seventy million dollars It was
done at the height of the first internet bubble and
while timing is everything sometimes google's original investment netted it's
angel investors some ten thousand times their money and spawned
a whole many industry in angels getting together hoping tio
you know do more googles When angels pool their money
they create what is called a seed fund think seeds
planted in the ground to eventually bear fruit You know
like that And when seed investors are right yeah sometimes
they make that ten thousand times their money thing and
yahoo google facebook and a small handful of others all
live in this lofty world of ten thousand xers We're
on ly the loftiest of angels fly q's call me
change All right i'll stop Hey if you've got google
money and you can call me whatever you want No
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