For Investors

Why is Live Free and Start interested in angel investors?

Angel investors - seeding

Access to capital is a critical component of any successful startup ecosystem. Founders may have innovative ideas for new technology or solutions to important problems, but without capital, they may never get to market.

Although Live Free and Start is not a source of investment, it is working to stimulate and catalyze activities leading to investment in New Hampshire’s startup ecosystem.  We hosted the Angel Investing in the Granite State conference in 2015, co-hosted the Investing in NH Forum series in 2016, and hosted two Getting Started in Angel Investing events for women angels.

Live Free and Start will continue to engage and educate investors to support entrepreneurship, job creation, and economic development.

What is an angel Investor?

An angel is an individual who provides his or her own capital for early stage and emerging businesses, usually in exchange for convertible debt or a share of ownership in the company.

There is no ‘one way’ to be an angel investor, just like there is no ‘one way’ to invest in real estate or the stock market. Some angels choose to invest only in the businesses of their friends or family members. Some may invest on their own, while others may invest with a group of like-minded angels. In a group, they can share ideas, insight, and expertise. Finally, some angels may join an angel fund like the Impact NH Fund.

Who can be an angel Investor?

Angels can be anyone!  They can be a retired executive, a successful business person with industry specific knowledge to share, an entrepreneur’s friend or family member, or an individual interested in supporting local economic development. In most cases, an angel must be an accredited investor and meet certain financial qualifications.

Why would someone want to become an Angel Investor?

Many successful angels are entrepreneurs at heart – excited by the thrill of supporting a team building a new endeavor, providing advice and mentorship, seeing a market grow or companies achieve great things.  Angels investing in their local market often have a desire to support their community and be a part of building a vibrant economy where they live.

As is true of all investing, angel investors can make money (sometimes a lot), though this is not without risk. Angel investors have the unique ability to invest small amounts of capital in the earliest stages of an idea.  While this investment is potentially more risky than a “normal” investment in the stock market, angel investments have the potential to provide tremendous returns for a relatively small influx of cash.

National impact of angel Investors:

  • There are close to 297,880 active angel investors in the U.S.
  • Angels invested $21.3 billion into 64,380 entrepreneurial ventures in 2015
  • Angel investments contributed to the creation of 263,950 new jobs in 2016 or 4.1 jobs per angel investment

*Source: UNH Center for Venture Research, 2016 Angel Market Analysis

Angel Investor Resources and Links

It is critical that angels fully understand the risks they are taking on with angel investing.  The relatively high returns that angel investors may seek reflects the higher level risk of investing in the early stage of a new business.  Getting an education in angel investing is the best first step in becoming involved in this activity. Below are a few links to help you get started.

View List of Angels and VC Firms in New Hampshire.

LFS Video Blog Series featuring NH angel investors

LFS Investing Blog Series

Angel Capital Association