David Azzato is an angel investor and entrepreneur who resides in London, UK. He is also into blockchain crypto. As an angel investor, he has first-hand experience in dealing with start-up investing.
David Azzato explains all established companies started as start-ups. A Start-up is a new and private company that is less than ten years old. Anyone can start a company; maintaining the business proves to be the real hustle. More people are becoming entrepreneurs to avoid employment. Thus, these entrepreneurs are bringing new ideas to life.
One of the requirements of starting your company is capital. The capital comes from an investor. A start-up investor’s role is to provide guidance and money to the new company to facilitate its success. Read more at Medium
An angel investor uses their savings to invest. David cautions against investing in high-risk start-ups as an angel investor due to the nature of your funding. Angel investors invest in many organizations but in small amounts in capital.
Venture capitalists are an excellent option for companies that need a considerable boost. These investors capitalize on huge amounts of capital in selected organizations. Venture capitalists are companies that are structured with general partners that are senior members of a firm.
Angel investors invest in more organizations while venture capitalists invest more money in fewer organizations. However, start-ups carry more risk investing than in already established companies. Statically, 90% of new companies fail. Therefore, it is a greater risk for venture capitalists to invest in a start-up.
Generally, investing in a start-up gives you an equity share in the company and a seat on the board. A seat on the board puts you in a position to help develop the company and influence major decisions. The main goal is to grow the business so that you can get more than you invested.
A good investor should evaluate pitches from entrepreneurs and decide on the best investment. Having a compelling vision, assessing market potential, and considering momentum are some guidelines that help in choosing the best start-up.
Investing in a new company means investing in the people involved in the start-up as well. A good start-up team’s attributes that an investor should evaluate and consider before investing are their skills and personalities.
According to David Azzato, sometimes the investments do not work out as expected. Acquisitions (M&A) and Initial Public Offering (IPO) are exit strategies that help end the partnership. Thus, investing proves a great source of personal wealth, and you get to be in business with something you feel passionate about.
Read more: https://www.f6s.com/davidazzato