What Is An Angel Investor?

What Is An Angel Investor?

1 Answer

  1. An angel investor is a person who invests in a start-up, new or small business venture or entrepreneurial companies, providing capital for start-up or expansion, invest for making profits and usually in exchange for convertible debt or ownership equity. . These are typically high net worth individuals who have spare cash available and are looking for a higher rate of return than would be given by more outside funding or traditional investments. Angel investors basically give support to start-ups at the very initial moments or the capital provided by Angel Investors may be a one-time investment but they are there when most investors are not prepared to help them. That’s the reason they are called angels.Summing it up, An Angel investor plays a vital role in the development of the economy of the business by providing the funding, risk capital which contributes to the economic growth and at the same time to the technological advances. They are more focused on the commitment and passion of the founders and from their experience, the larger market opportunities that they have identified.

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