CityVest invests in highly selective real estate private equity investment funds.
An angel investor is an individual or group of investors who invest in a business venture. Often, you’ll see angel investments in startup companies with capital provided to either start or expand the business. Angel investors are most concerned with the improvement of the company they invest in. Typically, you’ll see angel investors engage in one lump sum investment to support one stage of development, or through ongoing investments assisting a company in its first few steps.
Angel investors tend to believe in the businesses they invest in. Like venture capitalists, angel investors can make equity finance deals with companies, however angel investors tend to invest more in the growth of the entrepreneur versus the growth of the company. This means that angel investors can acquire ownership in the business they are investing in, but unlike a venture capitalist, they are using their own money, and not pooling the funds of wealthy individuals. For this reason, angel investors have a reputation for being less informal with more favorable terms compared to other lenders.
Most angel investments come from friends, family members, wealthy individuals, groups, firms, or crowd funders. Individual investors who realize an annual income of $200,000 with a net worth of $1 million are considered accredited investors by the Securities Exchange Commission. One great advantage of financing a business with the assistance of an angel investor is that there is far less risk involved for the business owner or company accepting the investment. If the business were to fail, angel investors understand the business and upfront risk, so capital does not typically need to be paid back. On the other hand, businesses that accept angel investments must give up total control, allowing the investor to take part in the operation and profits of the company. Compared to a bank, an angel investor will be much more hands on and passionate about improving a business venture, whereas banks are only interested in the repayment of a loan.
At the end of the day an angel investor does offer better terms than most lenders and will come with some expertise in hopes to ultimately propel the business to that next level. For instance, let’s say a close friend can provide $500,000 to your start-up company as an initial investment. For that $500,000 investment, you offer him 25% stake in the company because you know that he believes in the business and is willing to invest his own funds. As time goes on you become acquainted with his network of professionals, and can share in his expertise of how to run a successful business. In the end the company generates revenue, solidifying the foundation of the business.
While angel investors have similar goals to venture capitalists, there are a few key differences that set them apart:
Amount invested: An individual angel investor typically invests anywhere between $25,000 and $100,000, and angel groups tend to fund $750,000 or more. Venture capitalists tend to average about $7 million when investing in a company.
Stage of the Company: Both angel investors and venture capitalists stay away from funding ideas. You are likely to see angel investors enter the picture to assist in a stage of development once a prototype and proof of concept is established. Venture capitalists come in after the company is already successful to assist in its rapid growth and entrance to the public markets.
Strategy and Due Diligence: The extent of an angel investor’s due diligence will be limited, possibly occurring over informal meetings. There will be background checks and research done, however venture capitalists conduct a much heavier background verification procedure. A venture capitalist deal may spend up to $50,000 on verification and background check procedures prior to initiating an investment.
Angel inventors are more concerned with a company’s improvement and first stages of success. They can range from friends and family to wealthy individuals or groups. With presence in assisting start-up companies, angel investors tend to put up their own money in exchange for some percentage of stake in the company. If you have a startup company that is struggling to maintain cash flow, or require funding for the next stage of development, seeking an angel investment may be right for you. It is important that you review the terms and conditions of an angel investor prior to accepting any initial funding. If you want to maintain full control of your company, it may be worth it to keep exploring funding options till you find an investor that meets your goals and vision.
Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved. CityVest can help you:
You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.
CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.
Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.
CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.
Building Real Estate Wealth
Browse Investments How It Works FAQ Funds Seeking Capital Sponsors Seeking Capital
About Us Our Team Contact Us
Join Our Newsletter Real Estate Articles Learn Real Estate Education Real Estate Terms
Copyrights © 2022 All Rights Reserved by CityVest Capital Inc Privacy / Terms of Service
Please read the important disclosures below. CityVest.com is a website owned by CityVest Marketplace LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service. The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance. Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Prospective investors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about such calculations in the investment manager’s detailed financial and information material. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose. CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on CityVest.com are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment. © 2022 CityVest Marketplace LLC. All rights reserved.