Angel Investor

Angel Investor

Angels are Individuals who invest their personal capital in one or more early stage companies. Angel investors who invest in multiple companies sometimes belong to angel networks that receive and share information about potential investments, investing strategies and entrepreneurs. These repeat angel investors often have industry expertise in the spaces they invest in and therefore often assume roles as directors or advisory board members of the companies receiving the investments.

Angels tend not to make follow-on investments in the same company to avoid over-concentration in their investment portfolios. They invest comparatively limited personal capital, in contrast to Venture Capital funds, which typically raise and invest substantially more total capital from large institutions. Angel investors often bridge the gap between a friends and family round and venture capital Series A rounds.

Super angels are high net worth individuals whose primary profession has become making seed round and other venture capital investments. Their total available capital gives super angels the ability to make more follow-on investments than traditional angel investors.

    • Related Articles

    • Series A Financing Round

      ​Typically refers to the first financing round of a startup company led by a Venture Capital fund or other professional institutional investor. Series A financings typically have most or all of these characteristics: The company and the largest ...

    • Seed Financing Round

      Also sometimes referred to as a friends and family round, an early round of financing for a startup company, typically conducted not long after the company is formed. Startups may raise debt and equity capital in multiple rounds of seed financing ...

    • Friends & Family Round

      Another name for a startup's seed round of financing. The term is used particularly if most or all of the investors in a startup's seed round are close personal connections of the startup's founders.

    • Capital

      Capital is essentially wealth in the form of money or other assets that are owned by a person or organization, or simply available for purposes such as starting a company or even investing. Capital is most commonly defined as the large sum of money ...

    • Capital Efficiencies

      In the traditional sense, capital efficiency is the ratio that compares the spending of a company on their growing revenue and how much they are receiving in return in the way of profits. This means that if a company is earning $1 for every $1 spent, ...