Angel Investor
A high-net-worth individual who invests personal capital in early-stage startups.
Definition
An angel investor is an individual — typically a successful entrepreneur or executive — who uses personal capital to invest in early-stage companies, usually in exchange for equity or convertible instruments. Angel investments typically range from $10,000 to $500,000. Angels often provide value beyond capital: introductions, domain expertise, and credibility with future investors. Angel syndicates pool capital from multiple angels into a single investment vehicle.
Why It Matters
Angels fill a critical gap between founder bootstrapping and institutional venture capital. They accept higher risk for earlier-stage companies and are often willing to invest before a startup has significant revenue. A strong angel round from credible investors signals quality to later institutional investors.