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It is common to hear tales of companies receiving generous amounts of startup capital from fabled ‘angels.’ However, the reality is that most early stage ventures can’t delineate between an ‘angel investor’ and other types of capital. This article’s aim is to scratch the surface of this issue. We have many other articles that can help you figure out how to actually navigate these terrains, but knowing who these people are is where you should start.

So what is a typical Kansas City angel investor and what role do they play in assisting new startup companies?

An angel is typically a wealthy individual willing to invest in a company during its early stages in exchange for an ownership stake, typically in the form of preferred stock or convertible debt. The Small Business Administration estimates that there are no less than 250,000 angel investors who are active in the community, funding around 30,000 small startup companies, and accounting for between $20 and $50 billion annually. William H. Payne, an angel investor focusing on later-stage companies and resident with the  Ewing Marion Kauffman Foundation, estimates angel investors provide 90% of all seed and startup capital, whereas venture capitalists invest less than 2% in startups and focus on a smaller pool of later-stage companies.

Most commonly, angel investors tend to be retired executives or successful business owners who seek between 5-25% equity in a business. It is typical for talented entrepreneurs with unique ideas and well-formed business models to approach investors seeking $150,000 – $1.5m in capital.

What does this have to do with Kansas City? Well…a lot.  Angel investors aren’t robots. They’re dynamic human beings that live, eat, and play in different areas of the city. Unfortunately, you can’t go down to Oak Park Mall and pick up an Angel Investor and an Orange Julius. You have to try and understand people. Midwest people more specifically. On average, we’re more modest than other cities. This means investors tend to hide more often-than-not. But they’re also more easily approachable when found.

Our best suggestion to start meeting people like this is to surround yourself at the local Angel Investor “watering holes.” These types of individuals are attracted to programs like BetaBlox because we have a constant flow of new and researched investment opportunities. BetaBlox inspires further investment confidence by adding value on-top of access to the aforementioned modest millionaires.

Most of these statistics have come from Inc