An angel investor is an individual who provides financial support to early-stage or startup companies in exchange for equity ownership or convertible debt. Unlike venture capitalists who typically invest larger sums through institutions, angel investors are often wealthy individuals who seek to invest their personal funds. They typically invest in businesses that have a high potential for growth but may not yet be ready to secure funding from traditional sources like banks or venture capital firms.
Angel investors not only offer money but also bring valuable industry expertise, mentorship, and connections that can significantly help a new business grow. They are often one of the first sources of funding for a startup and are willing to take on more risk than other types of investors.
