Angel investor definition
What is an "angel investor"?
An angel investor, often simply called an angel, is an individual (often high net worth) who invests his or her own capital directly in businesses. Private equity funding angel investors typically invest at the earliest stages of a company even before venture funds are willing to invest. They are willing to accept the high risk of investment in return for high rates of return.
The Small Business Administration estimates that there are more than a quarter million angel investors in the U.S. with an investment pool of approximately $25 billion.
Angel investors are often successful business people themselves with the knowledge and resources to not only evaluate investment opportunities but also to assist businesses in which they invest. However, more than capital, an angel may also provide management expertise and contacts to the business in which he or she has invested.
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