{"id":7347,"date":"2012-04-04T10:00:13","date_gmt":"2012-04-04T14:00:13","guid":{"rendered":"http:\/\/stateimpact.npr.org\/new-hampshire\/?p=7347"},"modified":"2013-07-30T11:36:43","modified_gmt":"2013-07-30T15:36:43","slug":"five-reasons-why-angel-investors-think-shark-tank-matter-to-the-economy","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/new-hampshire\/2012\/04\/04\/five-reasons-why-angel-investors-think-shark-tank-matter-to-the-economy\/","title":{"rendered":"Five Reasons Why Angel Investors (Think “Shark Tank”) Matter To The Economy"},"content":{"rendered":"
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Thomas Lohnes \/ AFP\/Getty Images<\/p>

A hallmark of angel investors is aggressive risk-taking in the hopes that when a company's ready to go on the market, they'll see big returns<\/p><\/div>\n

If you’ve watched “Shark Tank<\/a>” on ABC (or its British forbear “Dragon’s Den<\/a>” on BBC in America), you’ve seen, to some extent, angel investors in action.\u00a0 Underneath the high-gloss of ratings-driven reality TV, you can catch a glimpse of this opaque, mysterious investment market.\u00a0 As Colleen Debaise of the Wall Street Journal<\/em> explains<\/a>, angel investments can act as bridges “between that money you’ve gotten from friends and family and the venture capital that you hope to secure down the road.”\u00a0 Of course, there’s a price to pay:<\/p>\n

“An angel is a wealthy individual willing to invest in a company at its earlier stages in exchange for an ownership stake, often in the form of preferred stock or convertible debt. Angels are considered one of the oldest sources of capital for start-up entrepreneurs…<\/p>\n

But little is known or understood about the angel market, largely because it consists of individuals who make investments quietly.”<\/p><\/blockquote>\n

Angels, Debaise notes, are willing to take big risks in a company’s early stages if they see big opportunities for expansion–and profit.\u00a0 In other words, these investors are picky, and in exchange for taking on serious risk, they can demand serious concessions from entrepreneurs.<\/p>\n

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