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What is an Angel Investor?
Home » Entrepreneurship » Angel Investors » What is an Angel Investor?Divine intervention would be welcome to get your start-up headed in the right direction, but if you?re looking for aid here on earth, an angel investor might be the answer. Angel investors are typically affluent entrepreneurs who provide venture capital for early-stage businesses, business concepts, or expansions in exchange for equity stakes. In hopes of high returns, angel investors are often willing to make high-risk investments with new companies instead of investing the traditional way through mutual funds and the stock market. These investors look for companies in industries in which they have considerable experience or past success?often in technology-related fields. In addition to providing start-up funding, angel investors often bring a wealth of contacts and industry expertise to the table.
Unlike a partner, the angel investor is rarely interested managing your company. Unlike venture capitalists, angels typically do not pool resources in professionally-managed funds and are under no obligation to make investments, which means that they're usually not actively pursuing opportunities. But these individuals do network with other investors and form groups to share research and merge investment capital. The standard range of funds available runs from $300,000 to $5 million.
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