Angel investor

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 capital

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.

Deal flow

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.

Startup company

startupstartupsstartup companies
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.

Seed money

seed fundingseed roundseed capital
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.

Equity crowdfunding

Crowdfunding Equity-based crowdfundingequity funding
A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies.
Angel investor

Founder CEO

Founderfoundersfounding CEO
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.

Patronage

patronpatronspatron of the arts
A similar term, "patron," is commonly used in arts.
Angel investor

Private equity

private-equityequityPrivate equity investor
Private equity
A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.

Super angel

angel fundssuper angel investor
Super angel
Super angels share some characteristics of traditional angel investors, and venture capitalists, and have been described as a hybrid of the two models.

Entrepreneurship

entrepreneurFounderentrepreneurs
Entrepreneurship
Financing (e.g. bank loans, venture capital financing, angel investing and government and private foundation grants)

Revenue-based financing

Revenue-based financing
RBF is often described as sitting between a bank loan, typically requiring collateral or significant assets, and angel investment or venture capital, which involve selling an equity portion of the business in exchange for the investment.

Accredited investor

accredited investorsaccreditedaccredited individuals
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.

Venture capital financing

venture fundingSeries Bventure capital
Venture funding
For more ambitious projects, some companies need more than what was mentioned above, some ventures have access to rare funding resources called angel investors.

Pre-money valuation

downround
Pre-money valuation
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.

Impact investing

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.

Deep tech

Deep tech
The term deep tech was coined in 2014 by Swati Chaturvedi, founder of Propel(x), the first deep tech angel investing platform.

Convertible bond

convertible debtconvertible noteconvertible bonds
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.

Equity (finance)

equityshareholders' equityequity capital
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.

Capital (economics)

capitalcapital flowsinvestment capital
A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies.

Broadway theatre

BroadwayBroadway musicalBroadway shows
The application of the term "angel" to a kind of investor originally comes from Broadway theater, where it was used to describe wealthy individuals who provided money for theatrical productions that would otherwise have had to shut down.

University of New Hampshire

New HampshireUNHU. of New Hampshire
In 1978, William Wetzel, then a professor at the University of New Hampshire and founder of its Center for Venture Research, completed a pioneering study on how entrepreneurs raised seed capital in the USA, and he began using the term "angel" to describe the investors who supported them.

Due diligence

due caredue diligence auditdue-diligence
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.

Investment fund

collective investment schemeinvestment fundsinvestment vehicle
Angels typically invest their own funds, unlike venture capitalists who manage the pooled money of others in a professionally managed fund.

Trust law

trusttrust fundtrusts
Although typically reflecting the investment judgment of an individual, the actual entity that provides the funding may be a trust, business, limited liability company, investment fund, or other vehicle.