Angel Investor

An angel investor is an affluent individual who provides capital to early-stage startups, typically in exchange for equity or convertible debt. Angel investors are often entrepreneurs themselves, offering not only financial backing but also mentorship, business connections, and strategic advice. Unlike venture capital firms, angel investors use their own money, which often allows them to be more flexible and take higher risks on new, innovative business ideas. Angels typically invest in businesses that are too early in their development to attract venture capital funding, thus playing a crucial role in the startup ecosystem. Investments from angel investors can range from a few thousand to several million dollars, depending on the potential of the business and the investor’s financial capacity. Many angel investors are also part of angel networks or groups, where they collaborate with other investors to fund startups and reduce individual risk. The involvement of an angel investor can provide startups with the initial boost they need to get off the ground, helping them reach the stage where they can secure larger rounds of funding.