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.