Angel Investor
Definition
Angel Investor: An angel investor is a high-net-worth individual who invests personal funds in early-stage startups, typically in exchange for equity. Angels often invest smaller amounts than VCs ($25K-$500K) and may provide mentorship and industry connections alongside capital.
Example Usage
βThree angel investors each put in $50K to help us build our MVP before we approached VCs.β
Common Misconceptions
Related Terms
Pre-Seed
Pre-seed is the earliest stage of startup funding, typically used to validate an idea, build an initial prototype, or conduct customer discovery. Pre-...
Seed Round
A seed round is typically the first official equity funding stage for a startup, used to develop the product, hire initial team members, and validate...
Venture Capital
Venture capital is a form of private equity financing provided by firms (VCs) to startups with high growth potential. VCs raise funds from limited par...
SAFE
A SAFE (Simple Agreement for Future Equity) is an investment contract that gives investors the right to receive equity in a future priced round. Creat...
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