What is an Angel Investor?
An angel investor is an individual who provides early-stage funding to startups, often in exchange for equity or convertible debt.
Table of Contents
Full Definition
Angel investors typically invest personal funds and may offer mentorship, industry connections, and strategic guidance.
They usually participate during seed or pre-seed stages when companies seek initial capital to validate ideas.
Their involvement can be crucial for startups lacking access to institutional funding.
Examples
Early-stage capital
Mentorship
Networking
Benefits
Accelerates product development
Provides business expertise
Expands investor base
Common Mistakes
Equity dilution
Potential influence on decisions
Conclusion
Angel investors play a key role in fueling innovation and bridging the gap to larger funding rounds.