An angel investor is an individual who provides financial support to startup companies or entrepreneurs. Angel investors typically invest in companies in the early stages of development, often when they are too small to attract traditional funding sources such as banks or venture capital firms. Angel investors may invest their own money or pool funds with other angel investors to provide financial support to startups.
Angel investors not only provide financial support but also offer valuable guidance and expertise to entrepreneurs. They often have extensive business experience and knowledge in a particular industry, and they use this knowledge to help the startups they invest in succeed. In exchange for their investment, angel investors usually receive an equity stake in the company, which means they own a percentage of the company and are entitled to a share of its profits. Overall, angel investors play an important role in supporting innovation and entrepreneurship, helping to bring new products, services, and ideas to the market.