Angel Investors

Synonyms

Business angels; Informal venture capital

Introduction

An angel investor is a person who provides capital, in the form of debt or equity, from his own funds to a private business owned. But angel investors, also called business angels, are more than just investors. They also give nonmonetary support to start-ups: due diligence, time, expertise, and network.

Angel investors are an important source of equity for small firms and start-ups with high potential in their early stage of development before to become attractive for venture capital. Most of the time they invest in seed stage, but they also invest in later stage. Angel investors may have been entrepreneurs themselves, and invest in start-ups after several success stories. They have also an important place in the development of entrepreneurial spirit and activities. They support a large range of innovation; they invest locally and in all sectors of activity. They do not only invest in technology intensive firms or high...