In livelihood undertakings or microenterprises, it is common for entrepreneurs to embark on a business venture as a “lone wolf,” not needing the capital or expertise of others. At best, it may be a “mom and pop” affair.
For small, medium, and large enterprises, the entrepreneur needs the capital and the expertise, or both of others, The choice of business partners here is a very critical one. A mistake would mean years of internal squabbling. Thus, the entrepreneur must choose the “company of angels,” partners who are well-meaning and like-minded.
Angel investors provide capital to entrepreneurs knowing that there are risks involved. However, they are prepared to support the entrepreneur because of the good business prospects they are seeing and their favorable character assessment of the entrepreneur. Angels also exert a lot of effort in choosing the correct partners. Angel investors may come in the form of senior relatives, close friends, and professional equity investors.
Angel industrial partners are people who can contribute their expertise, experience, technology, contacts, and good character that will enable the enterprise to succeed. In exchange for what they bring to the deal, they may demand shares of stock or a percentage slice of the profit. For businesses that would rely heavily on industrial partners, the entrepreneur is well advised to make the best choice of such angel partners.
