Millennials as a generation have finally outnumbered Baby Boomers in the United States as the most populous generational group. This trend is also being seen in the angel investment world. Angel investors seem to be getting younger all the time. Investors in their 20s and 30s are passionate, often just starting out in their careers, and are looking to grow as their investments begin to grow as well.
Millennial angels shouldn’t be ignored. Not only are they prepared for the entrepreneurial world thanks to their educational opportunities, but many of their parents are also entrepreneurs. Many Millennial angels were literally born to do this. That’s just one reason why you need to pay attention to this group. Here are some of the other key points every entrepreneur should be considering.
1. They Are Incredibly Loyal.
Millennials are almost loyal to a fault. This is because they directly identify with the brands they represent. This generation is more likely to stick with an entrepreneur even when facing difficult times because they’ve made a personal emotional connection to the project. For Millennial angels, it’s more than just money at stake.
2. They Have More Experience Than You Might Realize.
Many Millennial angels have been entrepreneurs for just as long as people in the other generations. It is very common for Millennials to start their own business while in college, if not immediately after they graduate. A high percentage of them started their first business when they were in their early teens. Don’t discount this experience as “youthful ambition.” This group knows how to run a startup and they’re willing to put time and money into a project that connects with them.
3. They Have Knowledge That Is Incredibly Relevant.
When an entrepreneur approaches angels that are Baby Boomers are even part of Generation X, there’s a good chance that the experiences and knowledge that decisions are based on could be 15-20 years old. For the Millennial angel, the lessons might have been learned just 6 months ago. This means it is fresh in their mind and they’re ready to make a difference right now. Not everyone sees this as an advantage, but it is a quality of this generational group that shouldn’t be ignored.
4. They Are Looking To Build a Community.
Millennials are incredibly social by nature as a group, which means they don’t want just another item in their portfolio. They want to engage with their investments and be informed of current daily activities.
5. They Love Companies That Want To Do More Than Make Money.
One of the fastest growing corporation structures in the US is the B Corp. This allows an organization to remain as a for-profit organization, but place an equal emphasis on social or environmental missions in addition to their goal of making money. For Millennial angels, there is a desire to improve the world. They derive personal joy from helping others. They volunteer their time in massive amounts to help those who are less fortunate. That attitude in a company is very attractive to them.
6. They Like To Work Quickly.
Any entrepreneur who has courted an angel for more than a year without much success can testify to the benefit of having angels who want to move quickly. Millennials aren’t going to make most corporations wait for an answer. Funding can happen in as little as 30 days from the initial presentation with some angels in this generational group. They have seen that the biggest winners are often those that move the fastest, so they’re willing to invest quickly.
7. They Aren’t Afraid To Take a Risk.
Millennial angels don’t always need to have a quick exit planned for an investment. If it takes 10 years for a healthy return to be generated, then they’ve got time to make that happen. A Baby Boomer angel, on the other hand, might want an almost immediate return on their investment. This means Millennial angels are willing to take on more risks because even if they experience a loss, the experiences they learned from the failed opportunity has a certain value to it as well.
The average age of an angel in the US right now is about 55. As more Millennial angels get involved, that average age is going to drop. We have much that we can learn from each other, which means there is a lot that we can all accomplish together. This is why we all must pay attention to Millennial angels if a new wave of business opportunities is going to find success.
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