Angel Investor is a term used to signify a person, business or a group that provides financial backing for small startups or entrepreneurs. The capital provided can be one time of seed money or ongoing support to carry the company through difficult times.
There are professional angel investors who own sophisticated businesses and want to extend their own experience in their field of expertise. They think beyond money. They might actually believe in what you do and update you with connections, ideas and some wisdom. Then there are others, they might not be professional investors, like doctors, lawyers or dentists. They have wealthy incomes and disposable finance. They sit on cash cushions, searching for good investment options or might just invest to get some excitement.
Angel investors invest in early stages of the company in exchange for an equity ownership. They are visionary people and care about the quality, commitment and integrity of the founders. Use of futuristic technology and early traction towards your plan might attract angel investors to invest in your business.
Angel Investors Vs Venture Capitalists