angel investorsangel investmentbusiness angelangel investingprivate investorsangelangel fundingangel investmentsbusiness angelsangel fund
An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.wikipedia
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venture capitalistventure capitalistsventure capital firm
Angels typically invest their own funds, unlike venture capitalists who manage the pooled money of others in a professionally managed fund.
In addition to Angel investing, equity crowdfunding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.
Beginning in the late 1980s, angels started to coalesce into informal groups with the goal of sharing deal flow and due diligence work, and pooling their funds to make larger investments.
Deal flow (or dealflow) is a term used by finance professionals such as venture capitalists, angel investors, private equity investors and investment bankers to refer to the rate at which they receive business proposals/investment offers.
seed fundingseed capitalseed
Angel capital fills the gap in seed funding between "friends and family" and more robust start-up financing through formal venture capital.
Seed money options include friends and family funding, angel funding, and crowdfunding.
An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, angel investors provide, in addition to funds, feedback, advice and contacts.
The startup ecosystem consists of the individuals (entrepreneurs, venture capitalists, angel investors, mentors, advisors); institutions and organizations (top research universities and institutes, business schools and entrepreneurship programs and centres operated by universities and colleges, non-profit entrepreneurship support organizations, government entrepreneurship programs and services, Chambers of commerce) business incubators and business accelerators and top-performing entrepreneurial firms and startups.
angel fundssuper angel investor
Super angels share some characteristics of traditional angel investors, and venture capitalists, and have been described as a hybrid of the two models.
private-equityequityprivate equity firm
A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.
Financing (e.g. bank loans, venture capital financing, angel investing and government and private foundation grants)
venture fundingventure capitalSeries B
For more ambitious projects, some companies need more than what was mentioned above, some ventures have access to rare funding resources called angel investors.
accredited investorsaccredited individualssophisticated parties
Angel groups are generally local organizations made up of 10 to 150 accredited investors interested in early-stage investing.
Generally, accredited investors include high-net-worth individuals, banks, financial institutions and other large corporations, who have access to complex and higher-risk investments such as venture capital, hedge funds and angel investments.
Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, angel investors provide, in addition to funds, feedback, advice and contacts.
2) Enter negotiations with potential investors for additional capital. As personal investors (family and friends), angel investors, and venture capitalists invest in the firm, founder CEOs must often give up some control. It is also possible that potential investors will make their investment in the firm contingent upon the appointment of a new CEO. This occurs when the investors do not trust the founder CEO's ability to lead the company longer term. The likelihood of this happening is higher when the amount of capital needed is higher and outsiders have a larger equity stake in the firm, giving them more control in these decisions.
Crowdfundingequity funding Equity-based crowdfunding
A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share research and pool their investment capital, as well as to provide advice to their portfolio companies.
External investors, such as venture capitalists and angel investors will use a pre-money valuation to determine how much equity to ask for in return for their cash injection to an entrepreneur and his or her startup company.
patronpatronspatron of the arts
A similar term, "patron," is commonly used in arts.
impact investmentimpact investorimpact venture investor
The same report also found an increase in angel investors making impact investments, with 25% of angels saying they had made an impact investment in 2014.
Groups of angel investors focused on impact, where individuals invest as a syndicate also exist.
Comparison of Business Angel Networks
Goodreads Choice Awardgoodreads.comGoodreads Choice Awards
In December 2007, the site received funding estimated at $750,000 from angel investors.
David W. "Dave" Berkus (born March 23, 1941) is an American angel investor and venture capitalist from California.
A.C. (Mike) MarkkulaClifford "Mike" Markkula Jr.
He was an angel investor and second CEO of Apple Computer, Inc., providing early critical funding and managerial support.
Chris Larsen (born 1960) is a business executive and angel investor best known for co-founding several Silicon Valley technology startups, including one based on peer to peer lending.
She is a leading angel investor focused on breakthrough efficacy in healthcare, government transparency, digital technology, biotechnology, and space.
Wayne Chang (born August 3, 1983) is an American entrepreneur, angel investor, film producer, and philanthropist.
Roopak Saluja (born 25 July 1975) is an Indian media businessman and angel investor.
Satish Dharmaraj is an American entrepreneur, speaker, angel investor and venture capitalist, who currently serves as a general partner with Redpoint Ventures.
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Festivals may require millions of USD to be organized, with the money often gathered through fundraising and angel investors.