Angel investing has become an increasingly popular way for startups to raise funds in recent years. However, with the rise of angel investing, issues surrounding the credibility and trustworthiness of individual angel investors have also emerged. This article will analyze angel investor reviews on the Better Business Bureau (BBB) platform to shed light on the credibility of angel investors.
Angel investor complaints filed with the BBB
The BBB provides a platform for consumers to submit complaints against businesses. An analysis of angel investor complaints on BBB reveals the most common issues consumers have experienced. These include failures to provide promised funding, lack of communication and transparency, and conflicts of interest.
BBB ratings and accreditation of angel investors
The BBB also rates and accredits certain businesses based on factors like their response to consumer complaints. However, most individual angel investors do not have BBB ratings or accreditation. This makes it difficult for startups to assess an angel’s trustworthiness through the BBB.
Limitations of BBB reviews for angel investors
Since angel investing largely occurs on an individual basis, angel investors are not required to register as businesses with the BBB. The lack of angel investor representation and the informal nature of angel deals limit the usefulness of BBB ratings for assessing angel credibility.
Alternative indicators of angel credibility
rather than rely solely on BBB reviews, startups should conduct additional due diligence on angel investors, such as examining their investing track record, confirming their ability to provide funding, and getting references from other entrepreneurs.
BBB reviews provide limited insight into angel investor credibility due to the informal nature of angel investing. Startups should leverage the BBB as one component of a comprehensive angel investor vetting process.