Angel Investor

An angel investor (sometimes referred to as a private investor, seed investor, or angel funder) is a rich individual who provides financial assistance to small firms or entrepreneurs in exchange for ownership of the company. Angel investors are frequently found among an entrepreneur's relatives and friends. Angel investors' money may be a one-time investment to help the company get started, or it may be a constant injection to support and sustain the company through its challenging early phases.

Individuals who seek to invest in early-stage businesses are known as angel investors. These sorts of investments are hazardous and should not account for more than 10% of an angel investor's portfolio. Most angel investors have surplus assets and seek a greater return rate than regular investment alternatives deliver.

Angel investors provide better conditions than traditional loans since they frequently invest in the entrepreneur starting the business rather than the firm's success. Angel investors are more interested in supporting enterprises in their initial steps than in the firm's potential return.

Because you're offering ownership shares in exchange for money, having an angel investor implies your company doesn't have to repay the cash. Angel funding is often reserved for established enterprises that have progressed past the startup stage. These businesses have shown potential in terms of earnings, but they still require funding to create goods or grow. Because an angel's money is at stake, they may be very driven to assist you in succeeding through mentorship or direct managerial assistance.