Angel Investor

What is an Angel Investor?

An angel investor is an individual who provides financial support to a startup, usually in exchange for equity ownership. Angel investors typically invest at the early stages when the company has limited or no revenue. They help startups get off the ground by offering funding, advice, and mentorship, playing a crucial role in the startup ecosystem.

Characteristics of Angel Investors

  • High-Risk Tolerance: Willing to invest in early-stage startups with uncertain futures.
  • Individual Investors: Unlike venture capital firms, angel investors are usually private individuals.
  • Active Involvement: Often provide guidance and mentorship to the founders.

Related Terms and Concepts

Equity, seed funding, venture capital, early-stage startup