Angel investors are wealthy individuals who invest in small start-up companies mainly for their own profit, normally in early stages. They care about the quality, passion, confidence, commitment, and integrity of the founders.They generally take an ownership position in the company in exchange for the money they invest. The angel investors have a role in decision-making which is very distributed.
First they meet the company which they decide to work with. Angels need to spend time with a team to hear their story and interact with them live and that’s what we call a pitch. Then there’s a diligence process. If the diligence goes well, the angel or angel group manager leading the deal will begin to talk to the entrepreneurs about prospective deal structure, valuation and deal terms. This then gets documented as termsheet followed by deal syndication which is almost the climax.