Angel Round

What is an Angel Round?

An angel round is an early stage of financing for a startup, often provided by angel investors. These individual investors offer capital in exchange for equity ownership, helping startups cover initial expenses and develop a proof of concept. Angel rounds typically precede larger venture capital funding and help bridge the gap between self-funding and institutional investment.

Characteristics of an Angel Round

  • Smaller Investment Amounts: Typically lower amounts than venture capital rounds, ranging from thousands to a few million dollars.
  • Early Stage Involvement: Angel investors often invest at the earliest stages, when the company may not yet have a finished product.
  • Flexible Terms: Investment terms can be more flexible than those of institutional investors.

Related Terms and Concepts

Angel investor, seed funding, equity, startup financing