Angel investor
An angel investor is an individual who provides financial backing for startups or small businesses, usually in exchange for ownership equity.
What is an Angel Investor?
An angel investor is a person who invests their own money into early-stage startups in exchange for equity.
Why it matters
Angel investors offer not just capital but also expertise, mentorship, and networking opportunities to help startups grow.
Examples
- Notable angel investors include Reid Hoffman and Peter Thiel.
- Angel investors helped fund companies like Uber and Airbnb in their early stages.
Related Concepts
- Venture Capitalists: Invest larger amounts of money more mature startups.
- Seed Funding: Early-stage funding for startups to develop an idea into a business.