Angel investing is the easiest way to get the capital to scale for small businesses and startups. It involves investors funding a company to help it expand its daily operations. It is a form of investment whereby the investor gives his/her approval of the business model and the potential of the business to be successful.
Angel investors are individuals with the financial power to fund a start-up company in return for a percentage of share in the business or a fixed return in the future. They assess the possibility of the business venture being successful before deciding on whether to invest or not.
Luca Schnetzler is among the many entrepreneurs with the passion to fund companies. He is a professional footballer playing for Hertha BSC, a German football club. Just like any other sports athlete, he is looking to diversify his revenue stream. His love for investments drove him to learn and analyze the different investment options that would work best for him. He drew his attention to angel investing after discovering its huge hidden potential when compared to other investment options.
His investment options certainly prove his interest as an angel investor. He started Netz Capital, an angel investment company to invest in promising startups. Luca uses Netz Capital to fund tech startups that look promising and help them grow to greater heights. Social Snowball, Chirpish, and Steam Commerce are among the start-ups Netz Capital has invested in and the future of these companies look promising. The investment firm is also looking into business-to-consumer companies for investment opportunities. The profit margins in such enterprises are higher since there are no middlemen involved in the trade.
Luca foresees so much potential in angel investment and in technology. There is no one investment option that is not risky, and hence Luca wants to take the risk and reap big if he is right in his decisions. His investment firm analyses every company before deciding on investing in it.
Here are some of the benefits of Angel Investing
Angel Investment allows you to invest in a lot of startups hence diversifying your investments. There is no guaranteed way of creating wealth other than diversifying your investments and increasing your revenue streams. If one venture doesn’t work out, at least you will have more ventures to lean on.
You are exposed to more diverse ideas and personalities which open up your mind. The many ideas provide you with more investment options to choose from and you have a better chance of picking the winner. Additionally, you are bound to meet other investors from different backgrounds and sectors with whom you can bounce off ideas and get more clarity on your decisions.
You get to support what you love and believe in having potential. As an angel investor, you have the final say when it comes to which business to support. You have the opportunity to put your money into what is important to you or the ventures you easily relate to and have experience in.
You have the opportunity to make money while not being directly involved in the daily operation of the business. You have understood the market needs and have voted with your money for the business to work on its goals.
There is a potential for a huge return on investment. You are funding a startup in return for a share in the company. If the business is successful, you end up making a big profit on your initial investment.