Angel / Angel Investor

Definition

An individual who invests their personal capital in early-stage, potentially high-growth companies.

See Also

Venture capital.

Tips

Angels usually make an investment in the form of a loan that can be converted into stock ownership or other forms of equity. Many angels form groups of angels known as “angel groups” or “angel networks.” Angel investments are typically less than $1 million, while venture capital investments are typically above $1 million. The primary difference between angel investors and venture capitalists is that angel investors invest their own capital while venture capitalists invest money that they raise from third parties (i.e., limited partners), such as pension funds, and insurance companies.