See Also: The Dilemma of Financing a Start-up Company How to Prepare an Investor Package What is a Term Sheet Working CapitalWhy Venture Capital?
Angel Investor Defined
Angel investors invest in private startup companies. They often provide the first source of outside capital
for a startup company.
Angel investors provide cash and managerial expertise to startup companies in their earliest stages of development – even if the business is only an idea. In return, the angel investors receive a stake in the company’s equity
. Angels also influence business decisions in the company.
Angel investors can be individual investors or groups of investors. Angels can be wealthy friends or relatives of the business owner, or they may be venture capitalists
Finding an angel investor can be difficult. The entrepreneur seeking startup capital from angel investors must work to establish a network of affluent community and industry contacts.