Abstract
Abstract This research explores the successful business model of the angel investor. It will cover his background, analyze the purpose of his investment, examine the initial investment and re-investment as well as studying how he makes investment decisions. The research will incorporate a gear company study case to verify the angel’s successful business model and will review the interaction between the angel investor and the company’s directors. Referencing Liu Man Red, "Venture Capital Bible", the angel investors will be divided into many categories, according to investment objectives, investment experience, investment practices, investment psychology, the degree of control and involvement, etc. From these categories and from the study case, these investors will be recognized as the type of investor that entrepreneurs want to do business with the most . During the analysis, an auditing program will be introduced serving as a reference or guideline to angel and other investors before and after investment decisions are made. Research found that another effective business model used by angel investors include five key success factors, namely be observant, always remain curios, do not get involved in unfamiliar areas, have adequate funding, and be good at finding suitable employers. These five factors were found to be essential conditions to becoming a successful angel investor.