What is "Angel Investor" meaning?

An angel investor is someone who provides financial backing to early-stage companies. They typically invest their own money in exchange for equity or debt that can later convert into equity.

Example

"After struggling to secure funding from venture capitalists, the startup founder turned to an angel investor who offered a $100,000 investment in exchange for equity in the company."

How is "Angel Investor" used in business?

In business, an angel investor helps startups grow by providing crucial early-stage funding. They often play a key role when traditional funding options are unavailable, offering financial support and sometimes mentorship.

Pro Tip

When approaching an angel investor, emphasize your startup’s growth potential and scalability to increase your chances of securing funding.

Related Terms

Seed Funding, Venture Capital, Equity Financing, Startup