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An angel investor is an individual who provides financial backing to early-stage startups, usually in exchange for ownership equity or convertible debt. These investors often use their own personal funds to support new businesses that have high growth potential but may not yet qualify for traditional funding.
Synonyms: startup investor, early-stage investor, seed investor, private investor
Angel investors play a crucial role in the startup ecosystem by providing the necessary capital that helps new businesses grow when other funding sources, like banks or venture capitalists, might be unavailable. Their investment can help startups develop products, hire staff, and expand operations.
Startups typically seek angel investors during the seed or early stages of their business. Angel investors not only provide money but often offer valuable mentorship, industry connections, and business advice, which can be critical for a startup's success.
Famous angel investors include individuals like Ron Conway, who has invested in companies such as Google and Facebook early on. Many angel investors are successful entrepreneurs or professionals who want to support new ventures.
