What is an angel investor?

An angel investor is an individual who provides financial support to start-up companies, typically in exchange for ownership equity or convertible debt. Angel investors are usually high net worth individuals who seek to invest in early-stage companies with high potential for growth.

Angel investors can provide funding at various stages of a start-up’s growth, from the initial seed stage to later rounds of financing. They typically invest smaller amounts of money compared to venture capitalists, and they may provide guidance, mentorship, and business connections to help the start-up succeed.

Angel investors often invest in companies within their industry or areas of expertise, and they may invest alone or as part of a group of investors. They typically look for start-ups with innovative business ideas, a strong team, and a clear plan for growth and profitability.

Overall, angel investors play a critical role in supporting the development of new businesses and driving innovation in the economy.